Finger pointing to a computer screen with an image of two hands greeting one another with a handshake. The words affiliate marketing appear on the right hand side of the screen.Affiliate marketing is a performance-based marketing strategy where a business rewards affiliates (online marketers) for each customer brought to the business by the affiliate’s own marketing efforts. It is a way for merchants to partner with digital marketing experts to reach a wider audience and drive traffic to their websites.  It also affords affiliates an opportunity to earn money on a performance basis. 




There are many benefits to using a performance-based marketing strategy for both merchants and affiliates. Some of the main benefits include: 

  1. Cost-effective marketing: Affiliate marketing is a cost-effective way for merchants to reach a wider audience. Merchants only pay affiliates when a sale is made, so there is no upfront cost for advertising. This option provides merchants with a low-risk plan that enables them to reach new customers.
  2. Increased sales: Participating in a performance-based marketing strategy can certainly help increase sales for merchants. Affiliates are only incentivized when conversions occur for the products or services of merchants, which makes them more likely to optimize their efforts for conversion.
  3. Increased brand awareness: Affiliates can help increase brand awareness for merchants. When affiliates promote a merchant’s products or services, they are helping to expose the brand to a wider audience.
  4. Access to new markets: Utilizing a performance-based marketing strategy allows merchants to tap into new markets that they may not have access to otherwise. Affiliates can help merchants reach new customers in different demographics, countries, social platforms, or private groups.
  5. Flexibility: Affiliate marketing offers flexibility for both merchants and affiliates. Merchants can choose which affiliates they want to work with and can set their own terms and conditions. Affiliates can choose which products or services they want to promote and can set their own strategy and schedule.

There are several statistics that demonstrate the effectiveness of affiliate marketing. Here are a few:

  • In 2020, affiliates generated $12.4 billion in the US alone (Source: Statista) 
  • Affiliate marketing has an average ROI of 122% (Source: Forrester) 
  • 82% of brands use affiliate marketing (Source: Affiliate Marketing Benchmark Study) 
  • Affiliate marketing has a conversion rate of 7% (Source: Affiliate Marketing Benchmark Study) 

Overall, affiliate marketing is a win-win for both merchants and affiliates. It is a cost-effective way for merchants to reach a wider audience and increase sales, and it allows affiliates to earn passive income by promoting products or services. By only paying when sales are made by affiliates, it takes the guesswork out of your performance-based marketing strategy. This approach provides a data-driven, result-motivated stream of revenue directly to your company. 

Are you a brand looking to work with online marketers on a performance basis or just want to learn more? Contact us today. 

Are you an Online Marketer (Publisher) looking to generate revenue through performance-based marketing? Sign up for free here.