How Affiliate Marketing Works?

There are three or four parties involved in this whole ordeal: the affiliate, the merchant, the consumer, and the affiliate network. 

• The Affiliate: Affiliates are publishers and content creators who carry out promotions for other brands and businesses. They invite customers to join a service or purchase a product through various promotional channels. They earn when a customer uses their unique affiliate code. 
• The Merchant: Merchants are the businesses or retailers who run these affiliate marketing programs, decide the commission structure, and pay the affiliate when they bring in new consumers. 
• The Consumers: Consumers are people who sign up for a service or make a purchase on the recommendation of the affiliates. They often use affiliate codes to avail special offers and discounts. 
• The Affiliate Network: Affiliate networks are platforms that connect affiliates with an affiliate marketing business. Using them is optional as they do charge some platform fees. You can directly sign up with affiliate programs if you wish to skip paying the fees.