As explained in the affiliate definition, the program allows for a third party to advertise for your business while also reaping in some of the benefits/revenue.
So when looking deeper into how the affiliate program runs, it is crucial that an affiliate has an affiliate link. The affiliate link is a tailored link that identifies the affiliate and the traffic that it brings to your brand. Without this link, the traffic from the affiliate is not traceable. This is not only bad for the affiliate because they won’t receive payment/revenue but your business won’t be able to identify the channel from which your consumers are coming from which is a crucial metric for optimizing your brand.
How does an affiliate link work?
When someone clicks on an affiliate link, they are directed to the merchant’s website. The code in the URL tracks the referral and rewards the affiliate when a purchase is made.
Who can use an affiliate link?
Anyone with access to a website or blog can create and use an affiliate links. Affiliate programs are open to both individuals and businesses alike.
What are some benefits of using an affiliate link?
Affiliate links provide merchants with a cost-effective way to reach new customers, while providing affiliates with commission for successful referrals. Additionally, it helps build trust between merchants and affiliates as well as encourages repeat purchases from customers.
Fun Fact:
"Affiliate links are responsible for 15% of all e-commerce orders, according to a 2018 study by the Performance Marketing Association." (Performance Marketing Association, 2018)