Affiliate marketing

Affiliate marketing, also known as affiliation marketing, is a digital strategy focused on achieving results. In other words, it’s a strategy in which an affiliate promotes a company’s products or services, and in return, the company pays them a percentage of the profits from each sale.

Affiliation is generally linked to sales (sale = commission for the affiliate), but affiliates can also earn financial compensation for driving qualified traffic to a landing page or generating sign-ups.

Affiliate marketing involves several key players, each playing a vital role in the affiliation process.

• Affiliates or publishers. These are companies or individuals who use their websites, blogs, social media, or email marketing campaigns to promote products or services in exchange for a commission.
• Advertisers. These are companies looking to promote their products or services by offering a financial commission to anyone who helps them expand their reach and attract more customers.
• Final consumers. They are the people who complete the purchase or goal defined in the affiliate campaign, allowing the affiliate to earn a commission from the advertiser. As a general rule, the consumer doesn’t realize they’re generating a commission for the affiliate or publisher.
• Affiliate program. It’s the network that connects advertisers with affiliates. It sets the conditions the affiliate must meet to earn a commission, along with the commitments the advertising company makes to the affiliate.

2. Advantages and disadvantages of affiliate marketing

At first glance, affiliate marketing may seem like an easy way to earn sales and commissions without a large investment, but in reality, it’s more complex. We’ll highlight the advantages and disadvantages of affiliate marketing from the perspectives of both the affiliate and the advertiser.

Advantages for affiliates

• They don’t need to manage product inventory or handle customer support or after-sales service.
• They can join multiple affiliate programs at the same time, even from different advertisers.
• Their risk is minimal since they don’t need to hold inventory or make a significant investment.

Disadvantages for affiliates

• Creating specialized content is necessary to recommend the product or service, as a banner is usually not enough.
• Commissions earned are typically very low.
• Recommending a product or service can hurt their credibility with their audience.

Advantages for advertisers

• They reach a wider audience by paying only when results are achieved.
• There’s no need for a large investment since the commission is only paid when the action is completed.
• If the goal is sales, the consumer completes the purchase and becomes your customer, allowing for future sales opportunities.

Disadvantages for advertisers

• Affiliates aren’t exclusive and might promote your brand while also recommending your competitors.
• They have no control over affiliates, who may switch to another affiliate program with better conditions, without prior notice.
• If promoted on inappropriate sites, it can damage their brand image.