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Affiliate marketing is a way for companies to sell more products, without having to spend so much time and money on advertising. You pay a percentage of each sale to your affiliates who refer people to your website.
After a visitor makes a purchase, the affiliate link that was attached to whatever type of marketing material (banner, social media post, etc) that was used by the affiliate, will let you know who referred that new customer. A percentage of the sale is then credited to the affiliate.
An affiliate marketer's job is to find people interested in the product or service that they are promoting. The affiliate's marketing efforts will send new customers, usually by way of a link that is coded, to the company's website. This lets the company know who to give credit for the sale.
You will want to stay in line with other companies using affiliate programs. You usually don't want to pay under 25% commissions, and paying bonuses will help you build a strong affiliate base and make them want to stay well into the future.
Drive more traffic to your online store using performance based marketing with ShareASale. ShareASale is an affiliate marketing network that has thousands of merchants that use there affiliate marketing platform.
There are many affiliate marketing networks that you can choose from. Depending on your industry, you will want to make sure that the affiliates have experience with your niche, and have access to the right traffic to show your marketing material to. You will then just have to decide what percentage to pay them.