Affiliate Marketing
Affiliates earn a commission (5-30%) on each sale via a unique link. The business pays only for results.
In practice
Affiliate marketing is a 'sales army' that works without a base salary. But: managing affiliates takes time.
Common misconception
'Affiliates mean easy money with no work.' A quality affiliate requires onboarding, materials, support, and timely payment.
How to fix it
Not generating sales? (1) is the commission competitive? (2) are there quality materials for affiliates? (3) is the attribution window 30 days? (4) a newsletter to affiliates about promotions.
Example
A cookware store: 120 affiliates, only 12 active. Narrowing to 20 focused affiliates plus a monthly newsletter grew sales 3.5x within 60 days.
Priority
Consider affiliates once margin exceeds 30% and after achieving PMF.
Related terms
Keep learning. Metrics that touch the same area:
- AttributionAnalyticsIdentifying which marketing channel 'deserves credit' for a conversion. Models: First-Touch, Last-Touch, Linear, Time-Decay, Data-Driven. Each model tells a different story.
- eCommerce / Electronic CommerceMarketingAll business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
- CPC – Cost Per ClickMarketingThe price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CPA – Cost Per AcquisitionMarketingThe amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
Jimmy tracks your Affiliate Marketing, automatically
WhatsApp alerts when something important changes. No dashboards, no hassle.