Affiliates are those individuals who earn commission by promoting/selling other company’s or person’s products online. These third-party individuals are effectively utilized by the businesses to drive more traffic, for which the affiliates will be given a sum of amount based on the contract or agreement.

In eCommerce, an affiliate can generate sales by promoting the merchant’s products or services. The affiliate has the freedom to choose the mode of advertising the merchant’s products/services which generate high clickthrough rates and conversions.

Based on the promotional tactics employed by the affiliate, he/she will get rewarded from the merchant in any of the following ways:

  • Pay Per Sale: The affiliate gets paid if the customer successfully purchases the product by proceeding via the affiliate links.
  • Pay Per Lead: The affiliate gets paid if he urges or persuades the visitor to perform a specific action like signing up for a subscription, filling a form, etc so that the visitor qualifies as a ‘lead’.
  • Pay Per Click: Based on the amount of web traffic a merchant receives for his site or any specific product page, the affiliates will get paid accordingly.

Subscribe to EcomSutra Insights

Get weekly business and marketing insights to grow your online business, straight to your mailbox!