How does it work, affiliate marketing via social media?

Look at yourself, you are certainly more likely to buy a product where a friend or family member family is enthusiast about than you assume of a seller how good a product is. Everybody knows a seller has just one goal: selling. Mouth to mouth advertising is still one of the best ways to acquire customers or sell products. As you can see affiliate marketing can be compared with network marketing.

Because the fact that more people buy products online, affiliate marketing is a growing market. The origin of affiliate marketing is in America; Amazon.com introduced the “associates program” in July 1996, which was a great success.
Affiliate marketing is a technique to promote products through another website or mailinglists by using a special link which is connected to a system so sales can be followed. If there comes a sale trough the link the affiliate has right to an agreed amount or percent of the sales. Businesses can also see which banner or link is the most clickable.

Businesses use affiliate marketing for several reasons. First of all, it is much cheaper than expensive marketing campaigns. A business only pays if actually a purchase has been made. A business which do not make use of an affiliate depends on own marketing campaigns and acquires customers on that way. By using one or more affiliates multiple customers can be attract which ensures more revenue.
The most common used terms to determine earnings are:
- CPC (Cost per Click): compensation per click on a banner or link;
- CPM (Cost per Mille): view x 1000;
- CPL (Cost per Lead): fee for subscription to a service, requesting a brochure or making an appointment;
- CPS (Cost per Sale): fee for each sale.

Social media is a way to get good quality affiliates. Many people join ´Groups´ when they use social media. A group is managed by someone who, in most cases, can send group messages to all members of the group. The manager must be persuaded to send a group message about the companies product and at one time a large group of your target group has been reached.