Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (partners or individuals) for driving traffic or sales to their products or services. Affiliates earn a commission based on the agreed action, such as a purchase, sign-up, or lead.
Also known as a publisher, the affiliate can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers. In other words, the affiliate promotes the product to persuade consumers that it is valuable or beneficial to them and convince them to purchase the product. If the consumer does end up buying the product, the affiliate receives a portion of the revenue made. Affiliates often have a very specific audience to whom they market, generally adhering to that audience’s interests. This creates a defined niche or personal brand that helps the affiliate attract consumers who will be most likely to act on the promotion.