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An established platform connecting brands with publishers. This platform allows publishers like bloggers or influencers to advertise their services.
The companies that use this network browse it for affiliates who can highlight the brand’s goods and services. The publishers working with the company are typically given digital cookies to embed in product links. They earn a small commission if customers click the link or buy the item before the cookie expires.
Affiliate marketing started taking off as a promotional strategy in the early 2010s. Since then, it has rapidly grown into an extremely popular way of generating online revenue and driving affiliate partner sales.
Spending on affiliate marketing reached $8.2 billion in 2022. This triples the figure from 2012, and 81% of advertisers now rely on it as a key part of their overall sales strategy.
What is an affiliate network?
An affiliate network is a platform that connects merchants with publishers through affiliate programs.
So what’s the difference between an affiliate network and an affiliate?
An affiliate marketing network is just a platform that connects companies and entrepreneurs. The affiliates are the bloggers, influencers, social media content creators, and more who refer customers over to the company and its products. They are compensated with a commission or finder’s fee.
What is the purpose of an affiliate network?
On the companies’ side of the equation, top affiliate networks let them extend their reach and grow brand awareness in a competitive marketplace.
Meanwhile, affiliate marketers may earn a commission in exchange for highlighting products and services that their audience may be interested in. The national or global affiliate network is the bridge between the two.
Affiliate networks help companies and entrepreneurs find each other. Many of the biggest affiliate networks also offer extra features. These can include a streamlined payment process, convenient communication channels, and offer certain legal protections for both sides.
What does an affiliate program look like in practical use?
Amazon Associates is a well-known example. Entrepreneurs who are accepted into Amazon’s affiliate program can earn a commission for most things sold on the website. These affiliates in Amazon’s affiliate program distribute links to its products that have an embedded digital cookie.
If a customer clicks the link and purchases something, these associates get a small percentage of that sale.
That percentage is a flat rate that varies depending on a product category. For instance, grocery items are at a 5% fee rate, but luxury beauty supplies are paid at a 10% rate.
This commission extends beyond what the customer clicked on. The associate will get a commission for almost anything the customer decides to buy while the cookie is active.