How Affiliate Marketing Works – A Step-by-Step Guide


How Affiliate Marketing Works – A Step-by-Step Guide

The ultimate goal of everyone is making more money from their business.

That’s the ultimate dream, right?

Do you want to generate money while you sleep?

More than 95% people get started with affiliate marketing to make money online.

Initially, I began to make money online is through affiliate marketing. In the affiliate marketing, when people purchase a product promoted by you, will make you receive a commission. The only thing you have to do is to drive as much traffic as you can. There is no need to create any product or provide support for that product.


It simply depends on the revenue sharing. If you are having a product and wanting to enhance your sales, you can offer marketers, financial incentives or else if you don’t have any product and want to make more money, then you can simply promote a product that has value and makes money out of it.

What Exactly Affiliate Marketing Is?

Affiliate marketing has turned out into an enormous online industry over the past few years, developing as an active way for marketers in order to sell their products and for originators to mold their audiences. Besides the popularity of affiliate marketing, many people are not aware of what exactly affiliate marketing is and how does it work.

Affiliate marketing-concept

Affiliate marketing can be simply defined as the process of making a commission by endorsing another company’s or people’s products. Find a product that you like, promote it to your friends or others and earn a profit from the sale made by you.

Offline Example

During my earlier school days when I used to be a child, my school uses to have fundraisers that included us to sell magazine subscriptions door to door. Magazines were soft-covered, eye catchy and consisted of glossy coverings that would be sent to the subscribers on a monthly or weekly basis. At that time I was too young to be able to realize that I was into some affiliate marketing program. The magazine companies were actually selling their products using us as mediums. They approached schools which have the ability to sell these products for them. For every magazine subscriptions, we were able to sell, the company reimbursed school with a once of their profit. (In the above-presented example, there is a subsidiary perspective later of affiliate marketing, the schools directly made use of its students to outsource the selling of products, in exchange for certain prizes that comes to those students who met certain sales figures)

So the same strategy is applicable to online affiliate marketing, but here the door to door approach for sales is switched by strategies which are well suited to the digital marketplace. In maximum cases, the affiliate marketing procedure works as mentioned below.


  • People to an affiliate’s website clicks an affiliate link which redirects them to the third-party landing page.
  • People make a purchase
  • Affiliate generates a commission depends on the value of the services and products bought at the partner’s site.

Economics of Affiliate Marketing:

For the affiliates, the equations of the affiliate marketing revenue look as mentioned below


Excessive reasons to become an affiliate:

1. Low cost: In order to start a business, you need to rent stock inventory and retail space which could easily cost thousands of dollars. But for an affiliate, one can get started for the cost of fries and burger.
2. No need of staff: There is no need of any staff, one can do affiliate marketing on their own.
3. There is no need of any product, the only thing you have to do is to promote products which are ready for sale.

How affiliate marketing assists you to make money online?


We all know that Affiliate marketing is the business of marketing another company’s product in exchange for a commission. In other words, affiliate marketers get paid to recommended products. And you do it online from anywhere at any time.

Here How it Works

Companies pay affiliates to drive traffic and sales to their websites. Almost every company that sell products online has an affiliate program. Even big companies that you heard of, such as amazon, Walmart, BestBuy, iTunes.


When you become an affiliate for a company, you get a special link for tracking purposes. This link is called as an affiliate link. The companies use this link to determine which customers came from your link so that you can get the credit for the sale. They track this information by placing a cookie on the customer browser.

Let Have a Look How it Work


If somebody clicks on your link weather on it’s your website or social media or email address it doesn’t matter. If they click on the link they go through the link and end up on the company’s website. Again, this is tracked through the cookie on the browser, so if they purchase anything from that company you get paid.

It’s all about providing value

You can’t just recommend products and expect people to trust your words. You have to show importance of product through free, content- providing value in the form of

• Blogpost
• videos
• Social media posts

So you should provide users something that has information that finds useful. If you want to make money online with affiliate marketing. Providing value to the users can grow your audience, build trust with your audience.
Bottom Line:

The affiliate market remains a massive industry in digital marketing, offers a feasible career opportunity for those who are capable of cracking the affiliate code. Affiliate marketing always works best for the affiliates who work seriously and honestly.