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What is Affiliate Marketing and How it unlock your business potentials?

Reading this post, you must heard about affiliate marketing somewhere else, if not even get used to it. 

Yes, a lot of people talk about affiliate marketing these days. Affiliate marketing is a truly massive revenue stream, generating billions of dollars annually. A lucrative land that enchants everybody passing by. 

Affiliate marketing is a truly massive revenue stream, generating billions of dollars annually. Everyone talks about it, but only some of them understand this industry thoroughly – it is just not that easy to understand. 

How it started  

Affiliate marketing can be traced back to the late 1980s when a UK music website called Cdnow.com developed a new program called Buywebprogram. In this way, other websites are allowed to place links to Cdnow.com. For each album sold, the websites that place links will share a portion of the profits. 

And some quick-witted immediately realized that affiliate marketing is an irreversible trend of the future, especially in the context of the digital world starting to boom.

In 1996, Amazon officially launched its own Affiliate Program, and it remains successful to this day. 

With the evolution of digital marketing, affiliate marketing evolved and become an essential part of many, if not every, online marketing strategy.  The whole industry is worth $17 billion and an average affiliate marketer earns over $8000 monthly.

An introduction to affiliate marketing 

Affiliate marketing is a performance-based marketing strategy in which a business rewards affiliates (a person or other businesses) for promoting their products or services and driving desired results, such as sales, leads, or website traffic. 

Four Pillars in Affiliate Marketing


Advertiser (Merchant)

Businesses (or individuals) provide products and services with the desire to optimize and increase online business efficiency. Advertisers must fully meet the requirements of goods and product quality based on publisher policies.


 Individuals and businesses who own websites, blogs, or social networking sites can generate unlimited income when participating in advertising products provided by distributors.

Affiliate marketing platform (Affiliate Network)

An affiliate marketing platform is an intermediary, connecting partners (publishers) and suppliers (advertisers). Such a marketplace plays the role of providing technical platforms such as banners, and advertising links, monitoring and evaluating advertising effectiveness, resolving disputes, paying commissions to Publishers…

Customer (End User)

The end user is the person who uses the advertiser’s products or services or takes other actions requested by the provider.

How Affiliate Marketing Works



Publishers and Advertisers connect through an available Affiliate Network. In most cases, Affiliate networks are the third-party tracking Advertiser’s affiliate campaigns. 


Publishers promote the business’s products or services through various online channels, such as their websites, social media, email marketing, or paid advertising. There they will insert an advertising banner or an affiliate link about the product they are promoting. 


This is the process in which Affiliate Networks use unique links or code to monitor and attribute the conversions to specific affiliates.

– Customers visit the Publisher’s website and click the advertising banner/link.

– When customers click on those links, a cookie will be attached to their device and recorded by the Affiliate Network.

– Customers complete orders. Also, it could be some other specific actions, such as filing an investigation. 

– The Affiliate Network checks the cookie and if it is one of the network’s Publishers, the order will be recorded on the network’s platform.

– From the network’s platform, both Advertiser and Publisher can track orders and commissions received.


If the order is accepted, publishers will receive a commission from the merchant. Commissions don’t always translate into monetary rewards; they can take various forms, such as coupons, gift codes, free products…

Those are just very very basic principles of Affiliate Marketing. There are also many variants of this strategy which can be extremely effective for specific business niches.

Pricing Models in Affiliate Marketing

Cost Per Action (CPA) 

Stand for Cost per Action advertising fee model. CPA is the most optimal advertising model today as it is based on user behavior. Advertisers only have to pay when customers perform a specific action such as making a purchase, registering for a service, filling out an investigation form, etc.

Cost Per Sale (CPS)

Publishers only receive commissions when orders are accepted by Advertisers.

Cost Per Order (CPO)

Publishers receive commissions when Customers successfully place orders on the Advertiser’s website.

Cost Per Lead (CPL)

Publishers receive commissions when customers complete the registration form. Advertisers are willing to pay for information from their potential customers.

Cost Per Qualified Lead (CPQL)

Similar to CPL, advertisers only pay for information from customers that meet their exact requirements. (For example: The customer must have a credit point above 700).

Why Affiliate Marketing?

Affiliate marketing is a secret weapon in digital marketing, delivering incomparable advantages to businesses. Let me explain why: 

Affiliate marketing is a combination of all digital marketing channels. To be more specific, it includes SEO, Email, Google Ads, PPC, etc. 

However, Affiliate marketing, by its essence, is an advertiser that depends on the publisher’s capacity to promote the products. The publisher executes all marketing campaigns possible and receives a commission when customers buy products. That’s why the product can appear on various online platforms, such as websites, blogs, social media,…

So, through Affiliate marketing, a brand could have more touch points in the customer journey. 

Impact on Customer Journey

Today, the customer journey is increasingly complex and uncontrollable. Businesses need a strategy to convey their brand message to potential end users at the right time.

So, according to reports, 70% of product buyers trust influencers’ ratings and reviews before purchasing the product.

Affiliate can be understood as “Performance marketing based on Partnership”. Businesses rely on Publishers (partners) to bring their messages to customers.

Using Affiliate thereby provides opportunities for brands to penetrate deeper and into more optimal niches in the customer journey. affiliate marketing

In summary, affiliate marketing is the path to cost-effective growth, expanded reach, and enhanced credibility. It’s not just a marketing strategy; it’s a powerful business booster.

Deeper Understanding of your customer

In a world ruled by marketing metrics, statistics have significant meaning to the well-being of a business.

Every business’s marketing strategy must focus on both increasing customer sales and the data that that marketing campaign brings.

With Affiliate marketing, businesses can use customer data provided by Publisher. The point is data collected through affiliate marketing is extremely diverse, as a result of its multi-platform marketing essence. 

The business owner can also balance their budget, and resources into effective channels. For example, if a campaign manager can identify which social media platform can bring a higher conversion rate, he can tend to approach influencers prevailing in that domain.

With the right approach to data, advertisers would understand better the customer insight. You can start with some simple questions such as: 

The most effective way to expand a business’s values?      

Who are your potential customers? 

For each touch point in the customer journey, what message is appropriate?

Revolution of traditional business

The whole world is automated and so is marketing. While this trend is increasingly evident and inevitable, many companies are still stuck with traditional, comfortable marketing techniques.

They don’t know where to start changing. They see risks as soon as they think about making a change. There are many risk factors such as high personnel and management costs, or capital loss. They can see some risks but are ignorant of others. We are here to help clear that fog.

Affiliate marketing allows them to have a revolution in productivity.

Affiliate Marketing allows Advertisers to cooperate with Publishers, creating opportunities for businesses’ brands to be reached simultaneously on many different platforms.

With a low investment level, advertisers only have to pay when the customer’s order is recorded and paid successfully.

Switching to affiliate marketing may seem daunting but it is a matter of survival. It’s a step towards staying competitive in the modern marketing landscape.


BixGrow are here to help you with affiliate marketing!

Affiliate marketing is the most effective marketing strategy for e-commerce businesses these days. You can utilize the power of other websites and influencers within your industry to endorse your products, and expand your presence with a high return-on-investment rate. 

To find inspiration for your business, just explore how our distinct strategies can help you with a growth hack, foster the brand reputation and, of course, stimulate more sales. Good luck, have fun! 

I have been working in marketing for four years, passionate about creative writing and copy writing. Love to be alone at watersides, sip coffee, play games or read anything that is thought provoking.


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