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A Beginners Guide to Understanding the Power of Affiliate Marketing

In today’s digital landscape, affiliate marketing has emerged as a powerful strategy for brands to drive sales, increase brand exposure and foster mutually beneficial partnerships with the appropriate publisher landscape. Yet, many marketers are still unfamiliar with this channel and the opportunities it presents. We are here to bring clarity to affiliate marketing, explain the fundamentals and shed light on its potential benefits. 

What is Affiliate Marketing?  

Affiliate marketing is a performance-based marketing channel where direct to consumer brands establish partnerships with affiliates (aka: publishers) to promote their products. Affiliates/publishers earn a commission for each successful sale, lead, or action generated through their marketing efforts on behalf of the merchant/brand. It is a win-win situation, with brands benefiting from increased sales/exposure and affiliates/publishers earning commissions through successful referrals/sales or leads. 

How Does Affiliate Marketing Work?  

The affiliate marketing process typically involves 4 key components:

  1. Brand: a product who possesses the ability to sell online through their own website
  2. Network: a tracking technology that manages (at minimum) the clicks/transactions and payments to publisher/affiliate
  3. Affiliate (aka: Publisher): one who promotes a brand in exchange for commissions paid for successful transactions/actions taken. 
  4. Customer: one who purchases a brand/product.

Affiliate Marketing is a cost-effective channel:  Average of 12:1 ROAS*

Affiliate Marketing investment grew 47% from $6.2B in 2018 to $9.1B in 2021 – driving $71B in eCommerce sales.*

*2022 Performance Marketing Association Independent Study

A healthy affiliate program can add up to 25% incremental eCommerce.

Reach out to us to learn more about how this channel can work for your brand strategically and profitably.

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