What is Affiliate? Check out the explanation and how it works below.

There are many ways to make money that you can do, from becoming an employee, opening a business, becoming a reseller or dropshipper, insurance or property agent, tutoring classes, to taking advantage of affiliate programs. Talking about affiliation, do you know what an affiliate is? For more detailed information, see the explanation below.

1. Definition

According to the KBBI, an affiliation is a form of cooperation between two institutions where one is bigger than the other but each of them stands alone. As for assistance provided by larger institutions in the form of personnel, equipment, or facilities. There are several affiliate business people. The first is the producer or the owner of the product, the second is the person who acts as an affiliate or the person who joins the affiliate program and the last is the consumer.

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To get a commission through this program, you must market the product/service from the producer to the consumer until the consumer is successful in making a transaction. So, basically, this business only requires marketing capital. Some of them even start without capital.

2. Ways of working

Then how does the affiliate program work? As explained above, to start an affiliate business, you do not stock products or goods because the goods are obtained from the manufacturer and you only act as an intermediary. The following is an explanation of the working steps of the affiliate program.

2.1. Program List

The first thing you have to do is register yourself as an affiliate participant. You can register yourself through the website or website of the company that provides the program. After successfully registering, you will get a referral code where the code is not owned by other affiliates or is unique. The code is an indicator for the company or producer to give you a commission if there is a transaction from your unique code.

2.2. Promotion

Furthermore, you are required to promote your products/services to potential customers by providing your referral code during the purchase process. When potential customers are interested in the products/services offered, they will enter your referral code into a special column which will later become the calculation of the commission they get.

2.3. Use Referral Code

The use of referral codes is not only profitable from the affiliate side. The reason is, that consumers who use referral codes also have the advantage of getting promos or discounts.

2.4. Commission Earnings

When a consumer successfully purchases a product/service from a manufacturer using your unique code, the company or producer is obliged to give you a commission. The amount of consumers are usually in accordance with the initial agreement with several assessments such as the price of goods sold, increased traffic on the website, application downloads, and so on.

3. Types of Affiliates That Can Be Done

There are at least 3 types of affiliates that are most often used for promotional or marketing activities such as the following.

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3.1 Influencer 

An influencer is someone who has the ability to influence the decisions of others because of power in the form of knowledge, position, authority, or because of being associated with many followers. Influencers are also one of the most efficient promotion methods considering their ability to target the market for buying and selling transactions. This type of affiliate is the most in-demand considering the potential generated is also large.

Influencers have many followers who can be influenced to buy a product/service used by their influencer or idol. The more active followers on a platform, the higher the commission you get.

3.2 Blogger 

The next type of affiliation is to become a blogger. You can become a blogger by promoting products/services with a series of words or writings that are interesting and able to make the audience interested in buying the product.

3.3 Social Media

The last type of affiliation that can be done is to promote the producer's products/services through social media. You can create content ideas, short stories, testimonials, and so on to promote products or services by inserting your unique referral code.

4. Benefits of Joining the Affiliate Program

There are several advantages that you can get if you become an affiliate below.

1. Capital tends to be small but the results obtained are quite promising. You need capital in the form of good communication, credit, and a computer or laptop if needed.
2. Working hours are very flexible. You can start this job anytime and anywhere without being tied to a company or institution.
3. Can be used as additional income or passive income where you can earn money even though you are working in the office because the commission will automatically go to your account if there is a transaction between the producer and the consumer who inserts your referral code during the purchase process.
4. The income from this affiliate program is based on hard work. The better the promotion, the greater the income.

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5. Contoh Program Afiliasi 

In Indonesia itself, quite a lot of companies provide affiliate programs as one of their business methods. Then what companies provide the affiliate program? The first is Bukalapak, the indicator of this affiliate is CPS or cost per sale, where you will get a commission depending on the price of the product sold from your unique referral link or code.

Then there are Tokopedia and Shopee. Tokopedia provides an affiliate program where you will get a commission if you manage to sell items available on the Tokopedia application through your referral code. the commission will be sent within 1x24 hours. Unlike Tokopedia, you can get a commission if you become an affiliate at Shopee every time you sell a product that is allowed. The maximum commission for each transaction is IDR 10 thousand. The commission will be paid through your ShopeePay account.

The last one is to become an affiliate of Zalora. The system is the same as the others, you will be given a link or referral code that you can distribute and promote to attract potential consumers to buy products on Zalora. If successfully sold, then the commission earned ranges from 4-6% per product.

This is information about what an affiliate program is, how it works, its benefits, and a list of companies that provide an affiliate system in the business world. From the information above, are you interested in becoming an affiliate? If interested, make sure to do it with hard work and dedication so that the commission you get is also large.

Hope this article was useful!