Affiliate marketing is an advertising model where a company compensates third- party publishers (affiliates) to promote its products or services and generate traffic, leads, or sales. Affiliates earn a commission based on the performance, commonly when a sale is made through their unique affiliate links. This is a pay-for-performance marketing program where affiliates use different channels such as websites, blogs, social media, or emails to recommend products to their audience. How it works:
- An affiliate joins an affiliate program and receives a unique tracking link.
- The affiliate promotes products using this link via content like articles, videos, or ads.
- When a visitor clicks the affiliate’s link and makes a purchase or completes a qualifying action, the sale is tracked.
- The affiliate earns a commission for generating that sale or lead, usually a percentage of the sale price.
- Payment structures can vary, including pay per sale, pay per click, or pay per lead.
Affiliate marketing benefits companies by expanding their reach cost- effectively and benefits affiliates by enabling them to earn income by promoting products they enjoy. It has become a significant industry, especially online, with programs on platforms like Amazon, social media, and niche sites commonly used for promotion.
