Simply put by Pat Flynn, a thought leader in the areas of online entrepreneurship and digital marketing, Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product with high commission, promote it to others and earn a piece of the profit for each sale that you make.

It is an online sales tactic that lets a product owner increase sales by allowing others targeting the same audience – “affiliates” – to earn a commission by recommending the product to others. At the same time, it makes it possible for affiliates to earn money on product sales without creating products of their own.

3 Advantages of Becoming an Affiliate Marketer:

1. Passive Income:
An affiliate marketer can still maintain his present work or business and have the affiliate marketing income to supplement his financial position. With a laptop and an internet connection, you can work from almost anywhere, even while enjoying a vacation.

2. No stress:
The affiliate does not have to worry about customer support, book keeping, and e-commerce related headaches since in affiliate marketing, the merchant handles it all; all the affiliate needs to do is promote and resell the product. You are your own boss so you can choose to work whenever you like or need to.

3. No real investment:
Becoming an affiliate marketer does not require a sizeable investment and the affiliate simply has to have a good understanding of the product.

Affiliate marketing is equally beneficial for the merchant and has proved to become a very effective sales strategy.

1. Wider Reach:
Without a doubt, wider reach is a key component of any marketing strategy. By having affiliates, you can have your product or service held out for the online world to see. Each affiliate will target their own network which in turn will generates wider reach for your products or services. You sell more and make more money by using affiliate marketing.

2. Easy to track:
One of the greatest benefits of affiliate marketing is the fact that it can be tracked. Affiliate programs often allow you to see certain things like click-through rates or views of your site as a result of a customer having viewed an affiliate web page. This is an important part of building an effective affiliate marketing strategy because it allows you to see which affiliates work and which do not. Additionally, it may also tell you how you are performing on the different affiliate websites with different marketing tools, such as through a banner ad or a link placement.

3. Performance Based Incentives:
Affiliate marketing is one of the most cost effective direct marketing options. Other direct marketing schemes such as billboards, multimedia and pay-per click advertising may be expensive but in this case all the merchant needs in a website. Affiliate marketing has a great return on investment (ROI), as you only pay once sales have been made.