The concept is beneficial for both the advertiser and the business. For instance if you have a weight loss supplement that you want to sell, instead of spending heavily on advertising, you introduce an affiliate program. Where you ask marketers and advertisers to sign up and do sales on your behalf. Each gets a unique link and whenever a sale is made through that link the advertiser gets a commission that you decide earlier.
For instance, an advertiser who is already an influencer in the health industry, signs up for your affiliate program and gets a unique link. Now he or she shares this link with his followers on instagram on facebook, blog or podcast etc along with some description on why people should use it.
Anyone who clicks on the link, comes to your site and buys the product is actually a referal sale coming from that influencer.
This way your business gets more sales, the influencers get commissions and customers get the product.
To know more about what is affiliate marketing and how your business can benefit from it, watch the full video.
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