What Is Affiliate Marketing? Important Tips &Tricks

Affiliate marketing, as the name suggests, is a form of online marketing where multiple parties amalgamate and use each other’s network to earn profit/commission. It’s one of the most sought after money-making techniques used by bloggers. Should you run a blog and want to turn it into a successful internet business, affiliate marketing is the key for you.

Lest you have been blogging for some time, you would know how affiliate programs work. But if you are new to internet marketing and blogging, you may need a helping hand. Let me explain each and everything about affiliate marketing so that you can understand its basic concept and embark upon your journey to becoming a successful affiliate marketer.

What Is Affiliate Marketing & How It Works

Affiliate marketing is but a relationship between a minimum of three parties – Advertiser, Publisher, and Consumer, who use each other’s network and resources to execute the sale and earn profit/commission.

Anyone can be an advertiser as long as he’s willing to spend money to promote his services or products. Nowadays you can see business ranging from electronics to tourism, food, banking and insurance trying to take the internet’s route to promote their goods and services.

They contact publishers aka bloggers and internet marketers who promote their products and services by placing ads on their blogs. Lest blog readers find those ads valuable, they click on them and get redirected to advertisers’ websites, where they may or may not buy the product/services. This siteground review can be a beautiful example of how things work. Bloggers like you and me work as a link between merchants and customers and get the commission ranging between $1 to $10000 for each successful conversion.

Interesting? Keep Reading.

Different Affiliate Program Commission Models Used By Advertisers

Some affiliate programs pay you for each sale while others pay you for each lead generation or clicks. There are three primary affiliate program commission models that bloggers should pay heed to-

  • Cost Per Click or CPC: Visitors on your blog click advertiser’s banner and visit his site. This payment model is called CPC or cost per click. Businesses trying to garner online popularity for their company pages usually follow this method.
  • Cost Per Acquisition (CPA): When visitors referred by affiliate marketers (bloggers like you and me) buy goods and services from advertisers, it is called CPA model. Most of the E-commerce websites follow this payment model.
  • Cost Per Lead (CPL): When a visitor referred by the affiliate marketers clicks advertisers’ links and fill out the given online form, it is called CPL. Online businesses trying to prepare a mailing list to promote their services use this method to collect leads.

The one question that haunts most of the young bloggers and affiliate marketers is how do advertisers track all the transactions and make the payments without any confusion? How can they be sure about the genuineness of the affiliate programs?

Well, the answer is a unique tracking URL that’s given to all the affiliate marketers by the advertisers aka merchant companies.

Below is an example for you to understand this tracking process clearly-

Reference Affiliate Link
Reference Affiliate Link

It’s a reference link in which you can see certain numerical values. Let’s try to understand what they are-

  • AID: 10590299: Each affiliate link uses a unique AID that allows affiliate marketplaces like CJ, Clickbank, and Shareasale to track the transaction, identify appropriate advertiser and credit the affiliate marketer in the case of successful conversion.
  • PID: 5377085: The Publisher Website ID (PID) is used to identify affiliate marketer’s website. Any affiliate marketer can have multiple PIDs under one affiliate account.
  • SID: 012-123: Shopper ID (SID) helps affiliate marketers to target their unique customers and reward them.

These are unique numbers that facilitate smooth functioning of affiliate programs.

Online marketers have been earning huge commissions for the last two and a half decades, thanks to affiliate marketing. If you are also looking forward to trying hands in affiliate marketing, you can do so by identifying appropriate advertisers and registering for their affiliate programs. A typical affiliate form looks like this –

Affiliate Marketing Form
Affiliate Marketing Form

When you register for any affiliate program, you are given a unique tracking link which you can use while writing about that advertiser’s products/services. If readers buy anything using this link, you get the commission.

Common Terms Used In Affiliated Marketing

You need to get familiar with the below-mentioned terminologies to be a successful affiliate marketer-

  • Affiliates: Bloggers like you and me who use affiliate links to sell or promote advertisers’ products/services are called affiliates.
  • Affiliate Marketplace: Platforms such as CJ, Clickbank, and Shareasale that work as central databases for different affiliate programs are called affiliate marketplaces.
  • Affiliate ID: Similar to the affiliate tracking link, publishers are given affiliate IDs by advertisers. The details regarding their affiliate ID is mentioned in their affiliate account along with the affiliate link.
Affiliate ID
Affiliate ID
  • Payment Mode: Affiliate commissions can be received via different ways like wire transfer, Cheque, Paypal, etc.
  • Affiliate Manager: Many companies that run the large scale affiliate programs, appoint affiliate managers to help publishers carry out affiliate campaigns successfully.
  • Landing pages: They are used to increase sales. When you start affiliate marketing, you will need to promote multiple landing pages to sell different products.
  • 2-tier affiliate marketing: It’s an amazing way to earn huge commissions in affiliate marketing. 2-tier affiliate marketing works like MLM programs in which you ask others to join your affiliate programs. When your sub-affiliates make any sale, you also get a passive income popularly known as the sub-affiliate commission.
  • Custom Affiliate Account: If you generate a lot of sales for any publisher, chances are you might be offered a custom affiliate account with additional features and higher earning potential.

Future of Affiliate Marketing

Affiliate marketing presents an alternative to regular advertising to publishers. It not only saves cost but also takes sales to all new heights and creates social media brand awareness. Going forward, the scope of affiliate marketing will continue to increase.

Also Read: Importance of Social Media Marketing For Bloggers


Affiliate marketing is like a boon to bloggers which can help them earn $$$ every month. You can participate in affiliate programs and generate regular income from your blog. If you have any doubt, opinion or suggestion regarding affiliate marketing, feel free to share with me in the comment section.


9 thoughts on “What Is Affiliate Marketing? Important Tips &Tricks”

  1. Hi

    I have my website. i have vendors on board as well. those vendors dont have any knowledge in affiliate marketing but they want to. how can i integrate affiliate marketing on my site. where i need to register?

    • If you have direct vendors on board, you can simply put their banner ads containing the unique affiliate code on your website. You don’t need to register anywhere as long as you have direct contact with your them. Registration at affiliate marketplaces like CJ is needed in special cases. You can read here about that. Otherwise, ask for a unique affiliate code from your vendors (their web development team would know what you need) and create attractive banner ads. Let me know if you need more information.

    • I would like to take the opportunity of thanking you for your prnsafsiooel advice I have often enjoyed viewing your site. We are looking forward to the actual commencement of my school research and the entire planning would never have been complete without visiting your web blog. If I may be of any assistance to others, I will be ready to help through what I have gained from here.

  2. This is a useful guide for affiliate marketing. Thank you for sharing. It helped me out
    through my online money making journey.

  3. Thanks for sharing this detailed information on Affiliate Marketing. I’m thinking to start Affiliate Marketing on my blog. Then there will be two ways of income; Adsense & Affiliate. I’ve already had one account on CJ. I’ll definitely try for Affiliate Marketing.


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