Affiliate marketing is a performance-based marketing strategy where individuals (affiliates) earn a commission for promoting products or services of a company and generating sales or leads through their marketing efforts. In this setup, affiliates typically use unique tracking links to direct potential customers to the business's website. When someone makes a purchase or takes a specific action (like filling out a form), the affiliate gets paid a percentage of the sale or a fixed fee.
Here's how it works in a nutshell:
- Merchant (or Advertiser): The company or business that sells products or services and offers an affiliate program.
- Affiliate (or Publisher): The person or entity who promotes the merchant's products/services on their website, social media, or other platforms.
- Consumer: The end user who clicks on the affiliate link and makes a purchase or takes another action.
- Affiliate Network (optional): A platform that connects merchants with affiliates and manages tracking, payment, and other aspects of the partnership.