What is Affiliate Marketing? Basics, Benefits & How to Start

Published: 16 Aug 2025

Ever wondered how some YouTubers or bloggers make money online? Did you know that there’s a way to earn commissions by recommending products you love?

I know you guys are shocked, but that’s all the magic of “affiliate marketing”!. Now what is affiliate marketing, how does it work, and how can you guys make money? These are all queries that are going to be covered in this article.

Table of Content

So, let’s dive right in!

What is Affiliate Marketing?

Affiliate marketing is like teamwork, where people promote products for companies and get paid for it. Here’s how it works: First, you sign up to help a company sell their stuff. Then, you tell others about these products using special links or codes. When someone buys something through your link, you get a reward, like a thank you bonus.

So basically, you help sell things, and in return, you earn money. It’s a way for companies to sell more and for people to make extra cash online.

History of Affiliate Marketing

Believe it or not, the idea of rewarding people for bringing in new customers existed way before computers!

Think about a salesperson getting a commission for each item they sell. That’s a basic form of affiliate marketing.

Birth of the digital affiliate (1989): Fast forward to the late 1980s, when a company called PC Flowers & Gifts launched the first ever official affiliate program online. This means they started rewarding websites for sending them customers!

Amazon joins the party (1996): Seeing the potential of affiliate marketing, Amazon launched its famous Associates Program in 1996. This really helped make affiliate marketing a household name.

Tracking gets easier (1990s): Around this time, technology called “cookies” was invented. This helped websites track who came from an affiliate link, making it easier to pay them accurately.

Affiliate networks emerged (1998): As affiliate marketing grew, companies called affiliate networks started appearing. These networks connected advertisers with publishers (people promoting products), making it easier for everyone to get involved.

The rise of influencers (2010s): Social media stars and bloggers became a powerful force in marketing. Many started using affiliate marketing to promote products to their audience.

This is just a brief look at the history of affiliate marketing. Overall, affiliate marketing has grown from a simple concept in the 1990s to a multi-billion-dollar industry today!!!

Key Players in Affiliate Marketing

In affiliate marketing, there are four main players:

Merchants/advertisers
Affiliates/publishers
Affiliate networks
Customers

Let’s learn about these via example!

Merchants/Advertisers: Let’s consider a company called “DgAps,” which develops mobile applications. They want to boost their app downloads, so they decide to collaborate with affiliates. DGAPS becomes the merchant or advertiser.

Affiliates/Publishers: Now, imagine Abbas, a tech enthusiast who runs a YouTube channel about mobile apps. DgAps offers Abbas a commission for every app download he drives through his channel. Abbas is the affiliate or publisher because he promotes DgAps’ apps on his platform.

Affiliate Networks: Abbas joins an affiliate network called “AppAffiliateHub,” which connects him with various app developers, including DgAps. The network provides Abbas with tracking tools and handles payments between him and the app developers he promotes.

Customers: Lastly, there are people like Alex, who are searching for new apps to download. Alex watches Abbas’s video review of a DgAps’ app and decides to download it through the affiliate link provided by Abbas. Maria is the customer in this scenario.

Types of Affiliate Marketing

There are three major types of affiliate marketing:

Unattached Affiliate Marketing: You promote products without directly recommending them or being involved in the sales process.
Related Affiliate Marketing: You promote products that are relevant to your content or audience, making it more natural and helpful.
Involved Affiliate Marketing: You’re actively engaged in selling the products, often through personal recommendations or experiences.

Types of Affiliate Commissions

These are the common ways affiliate programs reward their affiliates, referred to as commission structures in affiliate marketing.

Pay-per-sale (PPS): Affiliates earn money when someone they refer makes a purchase.
Pay-per-click (PPC): Affiliates get paid each time someone clicks on their affiliate link, regardless of whether they buy anything.
Pay-per-lead (PPL): Affiliates receive a commission for generating leads, like getting people to sign up for a free trial or fill out a form.
Pay-per-impression (PPI): Affiliates earn money based on the number of times their affiliate link is seen by users, regardless of clicks or purchases.

Benefits of Affiliate Marketing

Here are simplified explanations of the benefits of affiliate marketing:

1. For Affiliates

Earn Money without Products: Affiliates can make money by promoting products they don’t own.
Work Anywhere: They can work from anywhere, giving them flexibility.
Promote Many Things: Affiliates can advertise lots of products, making their income potential bigger.

2. For Merchants

Cost-Effective: It’s cheaper than traditional advertising and helps find new customers.
Use Trusted Influencers: They can partner with respected affiliates to gain trust with customers.
Pay for Results: Merchants only pay when they get sales or leads, making it more cost-efficient.

3. For Consumers:

More Choices: Consumers can find a wider range of products online.
Trustworthy Recommendations: They can trust affiliates’ advice when making purchases.

How to Get Started with Affiliate Marketing

Getting started with affiliate marketing is easy! Here’s how:

1. For Affiliates

Choosing a niche and target audience: Think about what you love and who might want to buy those things.
Identifying relevant affiliate programs to join: Find programs that match what you want to promote.
Strategies for promoting affiliate products (blogging, social media, etc.): Decide how you want to tell people about the products you’re promoting.
Importance of transparency and building trust with your audience: Be honest with your audience and build a good relationship with them.

2. For Merchants

Developing a strong affiliate program with clear terms and benefits: Make a program that’s easy to understand and gives good rewards.
Selecting the right affiliates who align with your brand: Choose affiliates who match what your company is all about.
Providing effective marketing materials and support to affiliates: Give your affiliates the tools and help they need to promote your products well.

Success Tips for Affiliate Marketing

Here are some simple tips for doing well in affiliate marketing:

Transparency and disclosure: Be open about your affiliate partnerships. Let your audience know when you’re promoting something and that you may earn a commission from their purchases.
Building trust with your audience: Provide valuable content and recommendations that genuinely help your audience. Engage with them, answer questions, and be authentic in your interactions.
Diversifying revenue streams: Don’t rely on just one product or platform. Explore different niches, products, and affiliate programs to spread out your income sources and reduce risk.
Tracking and analyzing performance metrics: Use tools like Google Analytics or affiliate program dashboards to monitor your performance. Pay attention to metrics like clicks, conversions, and commission earnings.
Staying updated with industry trends: Keep yourself informed about changes and innovations in affiliate marketing. Follow industry blogs, join forums or groups, and attend webinars or conferences to stay ahead!

Common Myths about Affiliate Marketing

You might hear a few things about affiliate marketing that don’t quite add up. Let’s clear them up!

Myth #1:

Get Rich Quick!

Truth: Building an affiliate income takes time and effort. You need to find good products, make interesting content, and gain people’s trust.

Myth #2:

Big Websites Only Win.

Truth: Even small websites with engaged followers can do well in affiliate marketing. Just pick a specific topic you know well and connect with your audience in a friendly way.

Myth #3:

It’s All About Annoying Ads.

Truth: The best affiliate marketing helps people. You should recommend products you truly like, not just throw ads everywhere.

Myth #4:

It’s Over and Done With.

Truth: Affiliate marketing is actually growing! More and more businesses use affiliates to find new customers.

Myth #5:

You Need a Fancy Website.

Truth: You can promote affiliate products on social media, YouTube videos, or even emails! There are many ways to get started.

The key to affiliate marketing is being honest and offering something valuable. Focus on creating great content and recommending products you love, and success will follow!

Conclusion

So, in this article, we’ve explored affiliate marketing from its basic definition to addressing some major misconceptions. Along the way, we’ve seen how it offers a flexible way for both individuals and businesses to earn income online.

However, like any strategy, affiliate marketing has its pros and cons. From my personal experience, I’ve found that promoting reliable products through affiliate links on your website and social platforms can lead to more sustainable success. By being open and honest, you can build trust with your peeps and keep the good vibes flowing.

FAQs

Here are some of the most commonly asked questions related to “What is affiliate marketing?”:

What are the advantages and disadvantages of affiliate marketing?

The major pros and cons of affiliate marketing are mentioned below.

Advantages:

Low cost/risk to start
Easy to scale income
Potential for high earnings

Disadvantages:

Reliant on others’ products
Requires consistent effort
Income can be variable

How many types of affiliate marketing are there?

There are three types of affiliate marketing:

Unattached (promote anything)
Involved (reviews, comparisons)
Related (niche-specific products)

How do I earn in affiliate marketing?

You earn money by promoting products or services through special affiliate links. When someone clicks your link and makes a purchase, you get a commission. Some programs also pay for leads or clicks, not just sales. The more traffic and trust you build, the higher your earnings can be.

How can I start affiliate marketing with no money?

Starting for free:

Use social media platforms like YouTube or Instagram.
Build a blog focused on a specific niche.
Partner with businesses offering free affiliate programs.

Is affiliate marketing easy?

Affiliate marketing is not very easy because it needs time and effort. You must create helpful content, grow your audience, and promote products consistently. Success does not come overnight. With patience and smart work, it can become rewarding.

How to create affiliate links?

First, join an affiliate program of a company or marketplace. After approval, you will get special trackable links for their products or services. You can copy these links and add them to your website, blog, or social media. When people use your link to buy, you earn a commission.