What is affiliate marketing and how it makes money from blog

What is Affiliate Marketing?

Affiliate marketing in simple words, is an Internet-based commission system. Companies those sell products in one online shop, pay commissions to website owners, visitors to the send customers to their shop and then buy them something too.

In contrast to normal banner advertising, affiliate marketing is the compensation for performance-related work. You are an affiliate or partner and that is only a commission.

For example, if among 1,000 visitors in this site click on an affiliate link (which can also be a banner with an appropriate affiliate link) and If they buy something in the store we will get a commission.

When affiliate marketing thus it depends not only on quantity, but also on quality. But for more in a different article in future.

How does affiliate marketing can make money?

The following is again a schematic representation of the affiliate marketing cycle:

This should promote the principles of how the affiliate marketing are clear.

There are advantages for both the company and the partner (also called affiliate). The company has to pay only a commission, although revenue was achieved. The Affiliate (eg, Mr. Meier) wins, if he exerts himself, and many visitors, also has a lot of commissions. With affiliate marketing you can earn very good money.
Variants

Of course there are different variations in affiliate marketing. So you can not only earn money when someone buys something.

A variant is for instance the insurance sector. If we as place an affiliate link and someone clicks on it, then we will get money, if that person simply requests only an insurance comparison.