With the advancement of the digital and social media, innovative marketing techniques are coming up with an aim to escalate the business and generate a response from the customer.

Affiliate Marketing has come up with a fascinating idea especially for businesses dealing with e-commerce and online sales. It is a great tool for businesses to increase awareness over the internet about their products. Moreover, there is a lesser amount of risk involved with affiliate marketing. It only requires the business to pay to the affiliates when a customer converts.

What is Affiliate Marketing?

By definition, affiliate marketing is a pre-arrangement in which an e-commerce retailer pays a fixed percentage as a commission to an external person/website for conversion from its referrals. Technically, it is an outsourced form of marketing wherein the affiliates are hired and paid to bring customers/conversions. They are paid only when there is a conversion and not when just their efforts drive traffic.

Generating traffic is worth only if it brings conversion. Otherwise, if the visitors don’t equate to more leads or revenue, it’s worthless. For this reason, affiliate marketing is becoming a widespread method of businesses especially in the retail and e-commerce industry where there is a huge business growth from affiliates.

Affiliate Marketing Works?

Tracking URL

Affiliates are assigned a tracking URL. This allows businesses to track the affiliate who is driving traffic.


Affiliates promote the business through different ways like – paid marketing (AdWords), YouTube video, mailers, blogs, reviews, etc.


After the conversion, the business needs to pay the agreed commission to the affiliate.