What Is Affiliate Marketing? Why Is It Important To Retailers and What Are The Future Trends?

Often think why there are hundreds of websites today that provide you with reviews and top ten lists of any products you need to choose from? Why do they exist? How do people earn from them?

Affiliate marketing is a concept where you market other people’s products for them and in turn get a commission from the sales that they drive from you. The commission is generally fixed based on the niche, the number of products and the amount of sales.

Starting an affiliate business is easy. Develop a website, publish the products of different companies that want to indulge in an affiliate program, drive traffic to your website by SEO and Google AdSense, sell the products for them, and earn a commission along the way. It is an ever-expanding industry and several businessmen are indulging in, to get a taste of it.

The most common example of this is Amazon Affiliate program. There are hundreds of websites in today’s date that are enrolled in the program and market products on amazon of different niches and earn commissions when the costumers directed from their website make a buy.

Good For Retailers?

With more and more consumers moving from offline modes of shopping to online, the retailers also need to change their marketing strategies. With evolving times, they also need to shift to digital marketing. And the best way for them right now, would be to do it through affiliates.

Studies have shown that people are much more likely to act on the endorsement of a person who is passionate about his reviews, for instance a review blogger, rather than that of a celebrity.

Also affiliate marketing is very accurately measurable and scalable. You can know the exact profit that you drive from the expense in a certain mode of affiliate marketing, as compared to other modes of advertising like posters. Because of this more effective marketing is possible by promoting commission structures with less CPA (Cost Per Acquisition). This makes affiliate marketing a more effective and less expensive form of marketing and driving sales.

Lastly, the number of affiliate marketers is increasing by the second. There are affiliate programs now available for almost every niche, however remote it might be. This is causing the service to be more accessible and more affordable too!

Future Trends

Net Banking

Net Banking, already introduced to several sites, will play a huge role in future affiliate marketing models since the websites will be able to directly process and accept payments from the potential costumers. This will save the marketers from losses of technical fallouts, link breakage etc. and might also increase the chances of sale! It supports the idea of grabbing the impulse buys.

Industry Collaboration for Continued Success

The industry of affiliate marketing would only be able to thrive if it works in collaboration. The major players in the market will have to regulate the industry so as to save the industry from differential pricing and exploitation of the new entrants.


Videos are eventually going to be on the rise in affiliate marketing too. The content publishers will gradually but surely realize that videos attract more sales. This will give rise to video platforms like YouTube.