What is affiliate marketing?


Affiliate marketing is a performance-based marketing strategy where a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s marketing efforts. As part of the broader digital marketing landscape, affiliate marketing can be implemented by any business, from small start-ups to large corporations, and it plays a crucial role in the strategies of digital marketing agencies.

Essentially, an affiliate promotes a product/service and earns a commission for each sale or lead they generate. Explore how Digidarts, a leading affiliate marketing agency in India, takes you through the affiliate marketing process.

Revenue sharing and motivation

The concept of affiliate marketing is rooted in revenue sharing. Advertisers are motivated to engage in affiliate marketing because it allows them to expand their reach and drive more sales without incurring substantial upfront marketing costs. On the other hand, affiliates are incentivized to participate in affiliate marketing because it offers them an opportunity to earn income by leveraging their online presence and marketing skills.

Utilizing digital channels

Affiliate marketing predominantly takes place in the digital realm, utilizing various online channels such as websites, blogs, social media, email marketing, and more. Affiliates create compelling content, including text, images, or videos, that promotes the advertiser’s products or services. Within this content, they embed unique affiliate links or banners that direct their audience to the advertiser’s website or landing page.

Accurate tracking and attribution

The affiliate links or banners contain tracking codes or identifiers that enable accurate tracking and attribution of sales or leads to the respective affiliates. This tracking system ensures that affiliates are credited for the conversions they generate, allowing for transparent and fair commission payments.

User actions and commission calculation

When a user clicks on an affiliate link and subsequently makes a purchase or completes a desired action, such as filling out a form or signing up for a newsletter, the affiliate’s tracking code captures this information. The tracking system then communicates the conversion data to the advertiser, who verifies the transaction and calculates the commission owed to the affiliate based on the predetermined commission structure.

Benefits for advertisers

Affiliate marketing offers a wide range of benefits for both advertisers and affiliates. For advertisers, it provides a cost-effective and performance-based approach to digital marketing. Advertisers only pay commissions when desired actions, such as sales or leads, are generated. This means that marketing budgets are utilized more efficiently, as expenses are directly tied to results. Additionally, affiliate marketing allows advertisers to tap into the diverse and established audiences of affiliates, leveraging their influence and trust to drive conversions.

Benefits for affiliates

Affiliates benefit from affiliate marketing by earning income without the need to create or maintain their own products or services. They have the freedom to choose from a vast array of products or services to promote, enabling them to align their promotional efforts with their audience’s interests and preferences. Furthermore, affiliates can leverage their existing online platforms, whether it’s a blog, social media account, or website, to amplify their promotional reach and maximize their earning potential.

Building strong partnerships

The success of affiliate marketing relies heavily on the relationship between advertisers and affiliates. Advertisers must provide affiliates with valuable marketing materials, such as banners, product images, and persuasive content, to facilitate effective promotion. Additionally, maintaining open lines of communication and providing timely support to affiliates is essential in fostering a mutually beneficial partnership.


In conclusion, affiliate marketing is a performance-based marketing strategy where affiliates promote products or services on behalf of advertisers and earn a commission for each successful referral. It leverages the power of digital channels to reach a wider audience and provides a cost-effective approach to marketing. By establishing strong partnerships and employing strategic promotional efforts, advertisers and affiliates can unlock the potential of affiliate marketing strategies to drive sales, generate leads, and mutually benefit from their collaborative efforts.

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