Affiliate Marketing
Definition
A performance-based model where partners earn commission for driving sales or leads to your business. You only pay for results.
What is Affiliate Marketing?
Affiliate marketing is a partnership where other people or businesses promote your products in exchange for a commission on resulting sales or leads. Affiliates share unique tracking links, and you pay them when those links generate conversions.
You only pay for results, making it low-risk.
How Affiliate Marketing Works
- You create a programme: Set commission rates and terms
- Affiliates join: Bloggers, influencers, or sites sign up
- They promote: Share links via content, email, or social
- Tracking records sales: Software tracks which affiliate drove each sale
- You pay commissions: Typically monthly, after a refund period
Commission Models
Pay Per Sale
Commission on completed purchases. Most common model.
- Typical rates: 5-30% of sale value
Pay Per Lead
Payment for qualified leads (form submissions, signups).
- Typical rates: £5-50 per lead
Pay Per Click
Payment for each click (rare, easy to abuse).
Benefits of Affiliate Marketing
- Performance-based: Only pay for actual results
- Extended reach: Access affiliates' audiences
- Scalable: Add affiliates without adding staff
- SEO benefits: Quality affiliates create backlinks
Running an Affiliate Programme
Through Networks
Platforms like Awin, CJ, or ShareASale connect you with affiliates and handle tracking/payments.
In-House
Software like Post Affiliate Pro or Tapfiliate lets you run your own programme.
Affiliate Marketing Challenges
- Finding quality affiliates (many are poor)
- Preventing fraud and abuse
- Managing brand representation
- Attribution conflicts with other marketing
- Commission costs eating margins
Is It Right for You?
Affiliate marketing works best with:
- Products with healthy margins
- Broad appeal
- Clear conversion tracking
- Resources to manage relationships