What is Affiliate Marketing – Definition

I have posted on Digital Marketing Channels in my previous post, that I have listed out the Most Important Digital Marketing Channels. Now, I will be going through one of most important channel called “Affiliate Marketing”. Display marketing will be comes under the Affiliate Marketing channel. This is a smart way to earn money, get more traffic, promotion can be done by choosing this method wisely.

What is Affiliate Marketing?

Here are some definitions:

“Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.”
– Neilpatel

“Affiliate marketing is an online arbitrage platform, which aggregates publishers’ inventory, breaking it down by geo, age, gender etc., and sells it to advertisers/agencies. This is how a controlled marketplace between buyers (advertisers), sellers (publishers), and ad networks is formed.”
– Adsterra Network

3 Main components for Affiliate Marketing:

  1. Advertiser
  2. Publisher
  3. User (Customer)

Advertiser is a manufacturer or company who wants to sell and advertise the product or service using online affiliates method. Publisher is a person who places promotion of this product or service on his website via different ad formats. User is the customers who see the ads in different websites in different formats.