Affiliate marketing sounds intimidating, but it’s worth getting into.  Since it’s closely tied to the ever-growing influencer marketing phenomenon, understanding the practice is more important now than ever. That’s also why it’s just as important that you let the Komodo team give you the answers you’re looking for. So, what is affiliate marketing, and how does it work? Put simply, it involves one party selling a product on the behalf of another, in return for a portion of the proceeds.

To use the example Komodo knows best, many influencer marketing campaigns also act as affiliate marketing campaigns. Let’s say that you represent a designer brand (if so, you’ve come to the right place), and you’re looking to utilise the promotive power of social media through affiliate marketing. Here’s how we’d make that happen:

• In this scenario, you would be the Product Creator.
• We, Komodo, with access to our own worldwide talent roster, would be the Affiliate Network.
• Once there’s dialogue between Creator and Network, a pipeline would be established between the Creator, their products, and the Affiliate Marketer. If you guessed that this Marketer would be one of the influencers we manage, then you’re on the right track.
• The Marketer would then promote the product in question to the Consumer – their own dedicated audience.
• The Creator and the Network, by providing a unique weblink to the Marketer, would be able to track what Consumer expenditure comes through the Marketer.
• Finally, proceeds would then be divided up between Creator, Network, and Marketer, according to an agreed percentage.

Clearly, there are multiple facets to affiliate marketing, meaning four main components are involved. While some regard the Network as an optional part of the process, agencies like Komodo offer the Creator access to a prime selection of online talent, hand-picked by virtue of their audiences, their creative strengths, and their relevance to the brand. While Marketers can come in many forms, modern influencers are the most effective.

We’ve already described why influencers make such potent Marketers, but to speak briefly, the combination of their inhabiting specific niches and their relatability results in the garnering of loyal, devoted followers. Such distinct audiences function as ready-made buyer personas, making them prime Consumers of products relevant to their interests. Networks, like Komodo, have the ability to recognise which Marketer’s following of Consumers best suits the Creator’s products and brand. Indeed, when it comes to the efficacy of influencers and affiliate marketing, the proof is in the pudding – influencer marketing is set to be worth over thirteen billion dollars by the year’s end.

If you want evidence closer to home, you can find plenty of information on Komodo’s influencer campaigns alongside examples of our work, but we hope that we’ve helped you not only define affiliate marketing, but also understand why your business might need it. However, there is one more detail to discuss. An Affiliate Merchant is a combination of a Creator and a Marketer.  Another unique creation of the digital age, the term Affiliate Merchant can include small business owners, solopreneurs, and Affiliate Marketers who have decided to create products of their own. In these cases, Affiliate Merchants execute this transition by partnering with other Marketers, but many still need a Network to gain the reach they need. It’s a complicated process, and relatively new, but Komodo doesn’t just have experience managing influencers – we’re also experienced in directly managing and strategizing various companies’ social media presence. However it comes about, affiliate marketing (by its very nature) isn’t something you should tackle without help.