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What is an Affiliate Program? Definition and Benefits

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what is an affiliate program | What is an Affiliate Program? Definition and BenefitMaking money without doing much is what most people want. You are very lucy because you live in a digital era. There are many ways to make money from the internet, right?.One way is to take advantage of an affiliate program. With an affiliate program, you can get passive income with very little capital.In this article, we will thoroughly discuss what affiliation is, what the benefits are, and of course how to make money from an affiliate program. Curious, right? Therefore, read this article to the end, yeah!

What is an Affiliate Program?

Affiliate programs are programs that allow you to earn commissions when you get other people to use a product.The amount of commission you get varies depending on the company policies you follow. For example, Amazon offers up to 10% commission.

How Affiliate Programs Work

Before further discussing how the affiliate program works, we first briefly describe the parties involved in it. There are three parties directly involved in the affiliate program:
  • Product Owner: can be a company, vendor, seller, and others. They are the ones who issue this affiliate program.
  • Affiliate: people who join affiliate programs. They are tasked with marketing products from affiliate program owners to potential customers.
  • Consumers: consumers can buy products from product owners through affiliates.
After knowing the parties involved, below we explain how affiliates work. The way the affiliate program works is as follows:

1. List of Affiliate Programs

To join the affiliate program, you must register first. Registration can usually be done on the company’s website.So, after registering, you will get a referral code. This referral code is unique for each person and is used as confirmation that a consumer has indeed purchased from that affiliate.Interestingly, sometimes it is you who are offered to join an affiliate program, you know. This affiliate program offering usually occurs to social media influencers or large traffic bloggers with discussion themes that are appropriate to the affiliate product.

2. Affiliate Product Promotion

In order for an affiliate business to generate a lot of commissions, you have to promote the referral code so that many people buy. You can do this promotion in several ways:

1. Create Product Reviews on Blog

You can write articles that review an affiliate product. But remember, you have to consider the compatibility of the blog theme with the affiliate product. Try to keep the blog’s target audience and the affiliate product’s target audience the same so that your promotion is effective.Write an unbiased review and discuss your experience with the product in depth. Describe the advantages and disadvantages, then end with your referral code CTA ( Call To Action ).To make a review of this referral product, you must have a blog. Therefore, if you don’t have a blog yet, we recommend creating one first. This blog is one of the important means of promoting your referral code.

2. Place a Banner on the Blog

Apart from writing reviews, placing banners on the blog can be another effective promotion method.Therefore, humans process images 60,000 times faster than text. Affiliate program banners can attract the attention of visitors faster than text promotions.Even so, don’t just place promo banners on each side of the website. Because this can make visitors sick and leave your website.Try to put up banners in strategic places, for example in the header or on the side of the blog. You can also combine it with product reviews and place a banner at the end of the article as a CTA.

3. Social Media

Create posts on social media discussing your affiliate products. Starting from a short review to repost from the official account of the product owner.Try to also implement a social media marketing strategy so that promotion is more effective and maximal. Therefore, we recommend that you study social media marketing.Don’t forget to include CTA in your posts on social media. This CTA can be in the form of a caption in the post or directing to a bio for a referral link.If you have a YouTube channel, even better because you can make educational videos about the topic of the affiliate product. Then, you can insert the referral link in the video or in the video description.

4. Online Forums

Online forums are the best place to find people who are interested in a particular field. Especially if you have a good reputation on these online forums, promoting an affiliate business can be easy.You can do promotions in online forums by writing a brief review of affiliate products. Or you can also join the discussion and then insert a referral link in your comments.However, one thing you must remember is that different forums have different rules of the game. There are forums that allow product promotion, there are forums that strictly prohibit the promotion of any kind. So you should first read the rules there.

3. People Use Your Referral Code

The purpose of doing an affiliate promotion is to have people use your referral code. Now, if someone uses a referral code, consumers get an additional discount and you as an affiliate get a commission. A win-win solution, right?Even though you get a commission from consumer purchases, it does not mean that the price of the product that consumers buy will be higher than the normal price. Generally, the prices are the same.In fact, in some cases, consumers actually get cheaper prices through referral codes rather than buying directly.

4. Get Commission

The commission will be obtained if someone uses your referral code. So here, you will share the profit with the product owner.However, getting a commission does not only require consumers to buy a product first, you know. Depending on the company, there are three types of commission from the affiliate program:

5. Per Sale

This is the type of commission sharing that is commonly used in affiliate programs. After a consumer purchases a product via a referral link, you will be given a commission of a few percent of the sales price.In other words, people don’t just have to click on the referral link, then you will immediately get a commission. However, they are required to make purchases first and become consumers of the company that owns the product.

6. Per Lead

This commission per lead is paid when the prospective customer successfully completes an activity that has been determined by the product owner. It can be from filling out forms, creating accounts, subscribing to newsletters, to downloading certain files.

7. Per Click

As the name suggests, this commission is paid when someone clicks on the referral link. Usually, the referral link will direct them to the product owner’s website. So it can be said that the commission per click is paid based on the increase in website traffic from the product owner.

Affiliate Program Benefits

Are you still unsure about joining the affiliate program? Here we describe six of the benefits you can get as an affiliate.

1. Passive Income

A job generally requires you to be at work to earn money. Meanwhile, with an affiliate program, you will still earn money even when you sleep.The promotions you initiated will stay there forever (unless you delete them). This keeps money coming within weeks, even months later.You don’t need to be at the computer to earn money. Just sit back and money will come for you.

2. Small Capital

There are two types of affiliate program providers. First are companies that do not provide mandatory requirements to buy their products in order to register for the affiliate program.Meanwhile, the second type, the company requires you to buy its products in order to participate in their affiliate program.The first type can be said for free, without spending any capital.For the second type, you should choose the product that you really need. So, you can meet your personal needs as well as earn money from products that people buy from affiliate programs.

3. Work From Home

You can run a referral link promotion strategy from anywhere, including from the sofa at home.All you need is an internet connection and a laptop/smartphone. So, affiliation is the perfect type of job for those of you who don’t like office work.

4. Flexible Working Hours

You are not bound by a contract that requires you to promote the affiliate program every day from certain hours like working in an office.So, you can decide when to promote and when to relax.

5. Can Join Many Affiliate Programs

You may feel that registering for one affiliate program is not enough. So, no need to worry because you can join affiliate programs from other companies at the same time.You can sign up for three or four affiliate programs at once, as long as they don’t conflict with the terms and conditions of other companies. So, make sure you read the terms first so that you don’t suffer consequences in the future.


Affiliate is a program that aims to get a commission from the results of promoting a product and can influence consumers to use the product.There are three parties related to affiliates, namely affiliates, producers or product owners, and consumers.The advantages that you can get from this job are getting passive income, having flexible working hours, and using little capital.
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