To thrive in online business merchants has to drive traffic to their websites. They achieve this by advertisement, SEO or through affiliates. Affiliates are third-party individuals acting as the link between the merchant and the online buyer. So what is Affiliate Referral? When an affiliate drives traffic to a merchant website, it is called an affiliate referral.
When a buyer clicks an affiliate link on the affiliate website, the buyer will be directed to the merchant website. Once the buyer enters the merchant website, the buyer is already considered an affiliate referral. Once a transaction is made, this include one of the following:
- the buyer purchased a product
- the buyer sign-up for a membership
- the buyer subscribed to a service
The affiliate earns a commission.
- Who pays the commission? It is the merchant.
- Does the merchant charge the buyer a higher price because the buyer bought the product through the affiliate website? No.
- Where will the merchant take the money to pay the affiliate commission? It is actually the money the merchant saved from paying advertisements which are expensive. Remember, the merchant pays the affiliate per sale whereas on advertising, the merchant pays whether a sale or not occurs.
Who benefited from this transaction?
- The affiliate because commissions will be paid for the hard work rendered.
- The merchant because a sale is converted
- However, mostly the buyer, since the affiliate provided the information which helped in making the decision which product or service or membership is worth the money. Again the buyer does not have to pay extra for completing the transaction through the affiliate website.
Now are you a buyer, do you want to be an affiliate or do you have a product to sell online? Wealthy Affiliate will teach you the skills on how to become a smart buyer, a successful affiliate or an online entrepreneur with a product to sell. As an online entrepreneur, you may have your affiliates promoting your product. Being a Wealthy Affiliate member is about having a real online business without investing a lot of money.
Wealthy Affiliate has a great community of online entrepreneurs willing to help each other to achieve success.
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