What is an affiliate program and how does it work?

An affiliate program is a program wherein a merchant (person, group, company, etc.) pays an affiliate for certain qualified actions. The affiliate can usually be paid by doing one of two actions: user clicks through the merchant’s website or user purchases of the merchant’s products and/or services.

When you become an affiliate for a merchant it’s important to take note that an affiliate agreement will be presented and the affiliate does not get a say in the said agreement. This agreement won't be signed but will  be posted on the merchant’s website and joining the affiliate program of that merchant means that you have read and accepted the terms and will abide by the said terms.

In the affiliate program, how you get paid would be through a set amount or percentage per sale or click. And you have to remember that not all companies are the same when paying their affiliates meaning the payment would vary per company that has an affiliate program and the terms they have set. People who are looking to be affiliates usually make websites that have links to the merchant’s website to be able to track their conversions and the amount or percentage they'll get paid or have a referral code if the affiliate does not have a website and the merchant provides these codes.

Example:

 A merchant can pay you P20.00 per successful sale from your referral or per click from your users and let’s say you referred 100 clients, but only 50 of those clients were successful so you get P1,000.00 from the 50 successful clients or you got 100 users to visit their website so you will get P2,000.00 in total.

Another example could be like this:

A merchant will pay you 1% of the total sales of your referred client(s). If the total of the sale is P150,000.00 you will get P1,500.00.

The best practice is to actually understand the merchant you're going to sign up to. Know what they do, sell and their goal so that you can know what works and what doesn’t work when looking for users. Targeting can be a lot easier when these practices are done because now you'll know who to target.

In the next article we are going to talk about the best brokerage companies offering affiliate program. Subscribe below to receive notification.

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