What is affiliate marketing and what are the benefits?

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Affiliate Marketing is one of the fastest growing industries worldwide, estimated to be worth over $12 billion by 2020. It is far from a new phenomenon, as the first such programs appeared in the late 1990s, and in recent years it has become increasingly popular in Bulgaria. However, there are still some myths and misconceptions about the essence of affiliate marketing. To make things clearer, in this article we will explain in plain language what exactly affiliate marketing is, how it works, and what its advantages are.

What is affiliate marketing?
Affiliate marketing, also known as partner marketing, is a type of results-oriented marketing. Today, it ranks among the most effective ways to increase sales and brand awareness , as well as to earn income online. Its rcs data netherlands feature is that the responsibility for creating impressions, promoting and selling the offered products or services is extended to third parties - partners. In exchange for achieved results, the partners receive a commission from the merchant.

How does affiliate marketing work?
For the sake of further clarity, let's give a concrete example. Imagine that you are the owner of an online store for luxury branded watches. In order to increase the sales of your products, you create an affiliate program. Your partners (affiliates) start advertising and recommending your products to users on their website or on their social networks. For each watch they sell, your partners receive a share of the profit (commission) that you have previously agreed upon.

In a traditional scenario, such as the one we described above, there are three main players involved. They are:

Product dealer/manufacturer
This is a brand or business that offers products and creates an affiliate program. In the example we used, this is the company that sells luxury watches. In different cases, the company may not only be a retailer, but also a manufacturer of products or a creator of services.