How does affiliate marketing work?
Affiliate marketing is very simple and anyone can use this method to earn money online. All you have to do is join an Affiliate program (which will assign a unique code that you can use to refer traffic to the target site) and select the products you would like to promote and the method from the options provided by the seller.
Most affiliate programs offer ready-made banners, text links and several other forms for you to copy the code and place on your website to start referring traffic. Any time an interested visitor clicks on these links from wherever you choose to place them (it could be on your website, in emails, eBooks, social media platforms etc), they are redirected to the service or product site and if they purchase the product or subscribe to the service, you as the referrer gets a commission.
The amount per referral is subjective to different affiliate programs. It could be a percentage like 10% per sale or a fix amount like $70 per sale/sign up.
Both you and the seller can track your performance through your affiliate ID using pre-installed tracking software. You can check your stats at anytime to find out what is working and what is not working since most tracking reports provide where the visitor clicked before been redirected to the seller’s page.
For instance, I stopped promoting services/products on Social Media through paid ads when I realized that 99% of the visitors that clicked on products I promote did so through my eBooks or website. The 1% did not buy and the Social Media ads turned out to be a waste of time and money.