What’s affiliate marketing and how it works

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If you’ve heard of affiliate marketing but have no idea what it is and are interested in knowing what it is all about, or if you already have some knowledge of what it is, but want to know more details about it, then you’ve come to the right place.

In this article, I will provide you with the necessary information about what it is and some elements in which affiliate marketing consists so that you know what to keep in mind before you start using it.

What’s affiliate marketing, and how it works?

First the first, what’s affiliate marketing and how it works? In short, affiliate marketing is a marketing strategy that consists of affiliating with a producer, website, or company that provides a service and promoting it on your social networks, blog, or website. Obtaining profits according to the number of people who see your ad or who enter the producer’s page through your link and buy a product.

You may think that this concept is new or that it has only recently begun to be used, but in reality, companies like Amazon have been using this marketing strategy for more than a decade.

Of course, it is true that with the rise of the internet and technological advances, this and other types of marketing have increased and become famous, with platforms and tools available for users to use in their affiliate marketing strategy and achieve better and faster results.


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This type of marketing can be an advantage for everyone since users can make profits by promoting other people’s products or services on their blogs or websites. Producers or people who provide the services will get more publicity. They will only have to pay if they get results. Even buyers benefit since they are provided with a more significant number of channels through which they can get the products and services that are looking for.

Types of Affiliate Marketing Models

There are several affiliate program formats, which are decided by the vendor, depending on which is best for their business. I will explain each one:

Cost per Click (CPC)

Also called pay per click (PPC), this format consists of the affiliate being paid according to the number of times users click on the advertisement or link.

Cost per Action (CPA)

In this format, the affiliate is remunerated only if after clicking on the link, the user performs some action on the vendor’s page, whether it be registering, filling out a form or making a purchase.

It is sometimes confused with cost per acquisition or cost per sale (CPS) and cost per lead (CPL). Still, the difference is that in the cost per transaction. The affiliate will only be paid if the user makes a purchase on the vendor’s website. In cost per lead, the user must leave his information somehow on the site, either through a form or registration. In CPA, there are different actions that the user can perform on the vendor’s website for the affiliate to be rewarded.

Cost Per 1,000 Impressions or Cost per Mile (CPM)

In the case of CPM, the advertiser pays the affiliate according to the number of views that the page where the advertising banner is located has. That is, according to the number of users that enter the page, the affiliate will be rewarded.

Now that you know about these different formats, you must take into account, which is the type of affiliate marketing that best suits your website and your preferences.


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How Do You Get Paid and How Much Affiliate Marketing Pay?

There are several payment methods for affiliates. It all depends on the platform you are affiliated to, among some of the ways you can find: direct bank transfer, payment by check, or cash through an e-wallet or payment processor such as Paypal. Some companies can even pay with gift cards.

Regarding the amount you could get as an affiliate, it will depend on the affiliate marketing model. If it is according to the sale of some product, the commission could be between 2% and 10%, but if it is a digital item such as an online course, the commission could be even higher than 50%.

For pay per click models, the average range is between $0.2 and $2.5, and for pay per impression from $0.01 to $2.00 per 1000 impressions, it all depends on the industry and the type of ad.

Pros and Cons of Affiliate Marketing

As we mentioned, this marketing can be beneficial for everyone, but let’s see what the advantages and disadvantages are:


– Don’t need to spend time and money on designing and creating a product. Because you’re promoting someone else’s products, you don’t have to invest time and money in creating your products.

– Low initial investment cost. To make a profit through affiliate marketing, you only need to spend money on creating a website where you can place the products and services you are going to promote, and enough time to create engaging content to attract customers to your site.

– Great diversity. You don’t need to advertise only one type of product. You can try several products and see which ones give you the most profit.

– More freedom. As it is an online job, you can work from anywhere as long as you have an internet connection, and you will have a more flexible schedule, which will help you to balance your work with your personal life better.


– A lot of competition. Affiliate marketing has become very popular in recent years, so there are a lot of people promoting items, which means that there is more competition.

– A significant investment of time and initial effort. Because there is a lot of competition, you will have to put more effort into your website. To position yourself better so that you can get more visits and, therefore, more opportunities to earn money with your affiliate links.

As you can see, affiliate marketing has several advantages that you can take advantage of. There are several things to take into account when choosing to monetize your website using it, so choose the best type of affiliate marketing strategy for your website. Start generating money with this productive type of marketing.

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