As the Internet continues to grow, so do the different forms of online marketing. One of the fastest growing forms is affiliate marketing; this is when an online retailer pays commission to an external website for traffic or sales generated from its referrals. Curious? Confused? A little bit of both? Read on as we highlight everything you need to know about affiliate marketing.


Affiliate marketing works by sharing the task of product marketing between multiple parties, with each one receiving a share of the revenue. The three main parties involved in this process are the retailer, the affiliate, and the consumer. 

First, the retailer is the party trying to market and sell their product. This is any company or individual who works with an affiliate to market their product with the goal of increasing sales.

Similar to the retailer, the affiliate could also be a company or an individual. The affiliate’s job is to convince potential customers to buy the product, and they, in turn, receive payment from the retailer. 

While the retailer and affiliate control the marketing aspect, the consumer is the one who ultimately buys the product. Consequently, consumers are essential in this process because their purchases generate revenue for both the retailer and affiliate. Without the consumer, neither party gets any value out of the arrangement. 

Sometimes, a successful affiliate marketing campaign requires a fourth party- the network. A network often acts as a middleman between the affiliate and the retailer. One of the most popular affiliate marketing networks when it comes to consumer products is the Amazon associates program.

Due to the increased popularity of affiliate marketing, there are now many channels for businesses to take advantage of. These range from smaller channels, such as influencers and bloggers, to large media websites with affiliate links for various products.  


As a result of the growth of E-commerce in recent years, traditional marketing is not as reliable as it used to be. Many companies are producing e-commerce driven content through strategies such as affiliate marketing to encourage consumers to buy their products.

According to Business Insider, approximately 15% of the digital media industry’s revenue comes from affiliate marketing. Hence, this form of marketing is growing quickly as more businesses are using it to increase their sales.


Affiliate marketing is just one of the many techniques that can help your business grow. If you would like to discuss more growth hacking strategies to help your business, visit our Pricing Estimate Page for more information.

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