What is an affiliate link?
An affiliate link is one that has a tracking code that enables you to sell other people’s products and get paid a commission whenever someone uses your particular link. It’s a way to promote what other people are selling AND generate passive income for your business.
It can also send traffic to your website.
For many online bloggers, affiliate marketing is their main source of income… and traffic.
The Federal Trade Commission requires all affiliate marketers to disclose their affiliate status to potential buyers as a means of protecting the consumer from being unfairly swayed to make a purchase. This means you must disclose that you’ll be receiving a financial payment if someone uses your link to purchase a product. This applies to endorsements: if you’re going to make recommendations regarding products and services and get compensated for doing so, you must let it be known up front.
Truth in advertising matters because most people are unaware that many bloggers are reimbursed for reviews. You cannot induce someone to buy without disclosing your potential bias.
A disclosure isn’t necessary, however, when the consumer understands and is well aware that the reviewer has a relationship with the company whom he or she is endorsing, and that financial rewards are part of the deal. The purpose of disclosure is to make sure consumers have all the information they need in order to make a purchase decision based on facts, not one person’s opinion, unless the consumer knows that the reviewer is being paid to give their opinion and can therefore decide how much weight to give to the review.
Traffic Boost
Affiliate marketing can boost traffic to your site if visitors are looking for the products you’re selling, but only if your title tags are written properly; otherwise, you could be penalized by search engines. Beware of so-called “black hat” tactics designed to give traffic to your site a boost, and possibly a blacklisting by Google and other search engines.
Bottom line: disclose disclose disclose.