What is affiliate marketing and how does it work?

In this blog we’re going to break down everything you need to know about affiliate marketing!

So, what is affiliate marketing?

Affiliate marketing is the process of earning a commission by promoting products for a company or individual. The affiliate will find a product, promote it, and in turn earns a commission from each sale.

How does it work?

We’re going to simplify the workings of affiliate marketing by creating a list of steps.

  1. Person A promotes a link or ad for the product/brand on their social media, website, or blog
  2. The customer clicks this link, which is unique to person A
  3. The product/brand make a sale from this customer
  4. This purchase is recorded by the affiliate network
  5. Person A earns commission from this sale


Minimal risk: There is minimal risk of loss, because payments are only made when a conversion occurs.

Low-cost start up: Affiliate marketing requires businesses to depend on their affiliates to create their own marketing content. This saves businesses money AND time when it comes to creating marketing content for their brand/products.

Flexible: This marketing technique is a great way for businesses to scale up on a budget. Businesses can easily make their affiliate programs smaller or bigger, with minimal cost.

Higher ROI: Affiliate marketing has shown to sometimes have a higher return of investment, than, perhaps, other  other marketing tactics. This is due to your target audience learning about your products and services from affiliates in their area of influence.


Competition: A disadvantage of affiliate marketing is the competition of affiliate marketers. There is a lot of talented affiliate marketers working in the same niche, which can make up a strong competition.

Wrong Impressions: Sometimes, affiliate marketing can give the wrong impression and be associated with spam marketing tactics. It all depends on the affiliate marketer and how they produce the campaign. Our best advice is to invest in quality affiliate marketers to ensure this doesn’t happen to you. Also, ask the question, does the affiliate align with your business values?  Think about it!

It’s just not right for you: This can be the case for so many businesses.  Affiliate Marketing might be the right strategy for some businesses, but it absolutely is not right for all business types.

Feeling unsure?

If you’re still unsure whether this is the right marketing tactic for you, we have many other blogs available to help you choose the best marketing strategy for your business. These blogs can be found on our website in the ‘Blog’ section. For more marketing tips and advice, you can follow us on our social media pages!