Cheap Affiliate Marketing Startups in 2020: Affiliate Marketing 101

Waking up at an unholy hour, driving to your office through heavy traffic and streets are jammed with half-asleep commuters like you, then going through emails after emails until five o’clock – these sound terrible, right? What if, instead of facing the stupor and the monotony of the race to earn a small amount of money, you can make lots of money anytime, anywhere – even in your sleep?

Ladies and gentlemen, that is the concept behind affiliate marketing. It is a popular method to generate a considerable sum of online revenue and drive sales. It is pretty beneficial to both the company or brand and affiliate marketers. It is a new push towards less conventional methods that have paid off.

As a matter of fact, at least 80% of brands and at least 84% of publishers hold the power of this marketing strategy – it will continue to rise as the method’s spending increase each year in the United States. The industry sees a 10% increase in spending in the country every year.

It means that this year, the number will reach a staggering $7 billion. In 2018 alone, content marketing cost is around 62% of conventional methods while also generating at least three times the leads of conventional methods. As a matter of fact, 16% of all product and service orders that are made through the Internet are because of the impact generated by affiliate marketing.

In 2017, the affiliate structure of e-Commerce giant, Amazon, changed. They offered rates of 1% to 10% of revenue for creators. It provides many opportunities for affiliates to increase their income-based verticals the company is selling on.

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This method is a process where the member can earn commissions from marketing other companies’ products or services. They simply search for services or products they like, promote it, and receive a piece of the profit on every sale the product will make. The sales are monitored using links from one online site to another.

How does it work?

Because this marketing type works by dividing the responsibilities of marketing and creation of products through different parties, it manages to influence the abilities of various individuals for a better and effective technique while giving every contributor a little share of the profit. To make it work, three various parties need to be involved:

  • Advertisers and the affiliate
  • Product creators and sellers
  • Consumers

Product creators and sellers

Sellers, whether they are a solo entrepreneur or large enterprise, are considered as vendors, merchants, retailers or product creators with products or services to market. Products can be physical objects like everyday household goods, or services like product tutorials.

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Sellers are also known as the brand, does not need to be involved in the marketing of the product or services actively, but they may also be an active advertiser, and earn money from sharing revenue associated with affiliated marketing.

Publisher or affiliate

Publishers and affiliates are synonymous with each other. They can be either a company or an individual that markets the seller’s products in a way that can attract potential consumers. In short, they promote products and services to help persuade the consumer that it is beneficial or valuable to them and convince people to purchase or avail the services or products.

If consumers do buy or avail the services or products, the publisher receives a portion of the sale made. These people usually have a particular audience where they market the products or services, generally sticking to what their audience is interested in. It creates a personal brand or defined niche that helps them attract potential consumers who can act on the promotion.


Whether consumers know it or not, they are the drivers of this type of marketing. Affiliates share the products with them on websites, blogs, or social media pages. When consumers purchase products, subsidiaries and sellers share the profit of the sale.

Sometimes, publishers will choose to be directed to the target market by telling them that they are getting commissions from the sales they make. Other times, consumers may be oblivious to the infrastructure behind the sale. Either way, consumers rarely pay more money for their purchase through this type of marketing; the publisher’s share of the deal is included in the product’s retail price.