A performance-based advertising model where affiliates (referrers) promote products on their blogs or social media, and receive commissions for purchases or registrations generated through their referrals. Advertisers benefit from low-risk customer acquisition, while affiliates earn supplementary income.
How Affiliate Marketing Works and the Key Players
Affiliate marketing involves four parties: the advertiser (merchant), the affiliate (publisher), the ASP (Affiliate Service Provider), and the consumer. The advertiser places ads through the ASP, and affiliates embed ad links on their media properties. When a consumer makes a purchase through that link, the affiliate receives a commission via the ASP.
There are three main commission structures. "Performance-based" pays when a product is purchased, "lead-based" pays for member registrations or document requests, and "click-based" pays according to the number of clicks. Amazon Associates is a representative example of the performance-based model, paying a fixed percentage of the purchase amount for referred products.
The Relationship Between Affiliate Marketing and Invitation Codes
Affiliate marketing and invitation codes (referral programs) share the concept of "customer acquisition through referrals," but their mechanisms differ. In affiliate marketing, third-party media operators promote products as advertisements, whereas invitation codes involve existing service users directly referring to acquaintances.
In recent years, hybrid approaches combining both have become increasingly common. For example, issuing a dedicated invitation code to an influencer, where both parties receive benefits when followers register using that code. This approach is gaining attention as a method that combines the broad reach of affiliate marketing with the high trust factor of invitation codes.
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