Affiliate Marketing: Definition, How it Works, Strengths and Weaknesses

The term affiliate marketing on this one is quite a lot in the world of digital marketing. Affiliate marketing can be regarded as an effective marketing strategy to implement at this time. In addition, affiliate marketing does not only benefit business people, but affiliate marketers too.

Through this program, you can generate rupiah coffers easily, just by using social media. So, if you like playing social media and creating content, there's nothing wrong with becoming an affiliate marketer. Here's a more complete article about affiliate marketing, listen to it!

Definition of Affiliate Marketing

Then what is affiliate marketing, anyway? Affiliate marketing is a program to promote products or services from a company. Later, you will get a commission if there is a buying and selling transaction. So, you will get a commission amount, following the percentage and selling price of the product. Usually commissions are calculated from sales, but some are calculated from leads, clicks to websites, free trial users, and application downloads.

This marketing strategy is quite effective in increasing product sales. If you open a Twitter or TikTok channel, surely you can easily find this type of marketing strategy. Of course you can also become an affiliate marketer. Don't worry, being an affiliate marketer doesn't require you to have a lot followers on social media, really.

How Affiliate Marketing Works

The way affiliate marketing works is actually easy, just share product links to various social media. Here's how affiliate marketing works.

1. Sign up for the Affiliate Program

The first thing you need to do if you are interested in becoming an affiliate marketer is to register with the affiliate program. You can register through the website of each company or brand of a product. In simple terms, you only need to type "affiliate marketing [brand or company]", a link will appear that leads to the affiliate registration page. For example, you want to register for Shopee Affiliate Program, then you just need to Google this keyword, you will find a website to register.

After registering for this affiliate program, you will receive an affiliate link. After that, there is an affiliate ID that is used to record all transactions originating from this ID. So the commission can go to your affiliate account.

2. Share the affiliate link

Once you get the affiliate link, you can share the link on your website or blog, TikTok, Instagram, Twitter or any other social network that you own. You can also share the link with the people closest to you.

For example on the TikTok app, people often visit interesting content and provide product links that lead to E-commerce or the TikTok store itself. For example, an asset in OOTD, at the end of the video, the content owner shares a link to buy pants, bag, top or shoes.

3. Make Transactions

After your affiliate link is spread on social media, usually if people are interested in the product they will immediately click on the link. If a visitor buys a product from your link, the transaction will be recorded by the affiliate link network.

4. Receiving Commissions

If the process of buying and selling users through your affiliate link is successful, of course you will receive a commission. The amount of commission you receive can vary according to the price of the product sold. You can withdraw your commission directly to your account, but there is a minimum amount to withdraw. For example, commissions can be disbursed if a total of IDR 50.000 has been collected, then you have to collect commissions of up to IDR 50.000 to withdraw it.

Advantages of Affiliate Marketing

Affiliate marketing provides many advantages, here are some of the advantages of affiliate marketing.

• It's easy to do, you only need to focus on marketing strategies and not be directly involved in product sales including product delivery.
• Can be done without capital or free.
• Can be used as additional income.
• Flexible, can be done anytime and anywhere.
• Can promote many products at once.

Disadvantages of Affiliate Marketing

In practice, being affiliate marketing also has many challenges and drawbacks. Here are the disadvantages of affiliate marketing.

• The amount of commission is unpredictable, so your income tends to fluctuate and is not fixed.
• It has many competitors, so you have to be creative in promoting a product that you offer on social media.
• Requires high work ethic and patience. Of course you have to be patient, especially if you are just starting your career as an affiliate marketer.

Here's an affiliate marketing article. Make the best use of your social media to gain rupiah coffers by becoming affiliate marketing. Hopefully the above article is useful, yes!