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How Affiliate Marketing Works [VIDEO]

Watch this 2-minute video to get a behind the scenes look at affiliate marketing. You'll learn about the relationship between advertisers, publishers, consumers, and affiliate networks, and what happens when a consumer clicks on a link and makes a purchase on an advertiser's site.

Video transcript:

Affiliate marketing has four main participants, the merchant, the affiliate, the network and the consumer. A merchant is a retailer or brand that allows a commercial entity or person referred to as an affiliate the opportunity to market products and services to consumer. At Rakuten our merchants are called advertisers and our affiliates are known as publishers.

When a consumer clicks an affiliate link, banner, or product on a publisher site they are taken to the advertiser's website to buy, pay and receive the product or service. But what really happens behind the scenes is how affiliate marketing works. When the consumer shops on the publisher's website a cookie is placed in the consumer's browser. This cookie tracks the transaction from start to finish providing business data to the advertiser. The advertiser receives payment and sends a commission to the publisher based on a previously set percentage. Typically, an affiliate network provides technology to manage the transactions between Publishers and Advertisers.

And that is how affiliate marketing works.

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    Elise Nicholson

    The affiliate marketing concept is easy to understand.

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    Teresa Epperson

    Thank you for the clarification.