How Does Affiliate Marketing Work?

How does affiliate marketing work? Affiliate marketing works based on a business relationship between a Merchant and an Affiliate.

Anyone (a Merchant) with a product or service for sale or otherwise, gets someone else (an Affiliate) to promote that product or service. Once the Affiliate has accomplished what the Merchant has in mind, the Affiliate receives a prearranged commission or fee for the accomplishment. This relationship between the Merchant and the Affiliate is established by a contractual agreement between both parties.

The Affiliate is responsible for promoting the product or service in a manner which complies with the guidelines of that contractual agreement. The Affiliate is not an employee. The Affiliate is an Independent Contractor.

The Merchant is responsible for keeping up with the sales of the Affiliate and disbursing the commissions and fees accordingly. In most cases the Merchant is also responsible for the handling and distribution of the product or service as well as dealing with Customer and Affiliate relations.

For additional insight into how does affiliate marketing work, take a look at "What Is An Affiliate Program."

Next: How Do I Join An Affiliate Program?

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