Affiliate marketing is a performance-based strategy where individuals or businesses promote products or services and earn a commission for each sale or action generated through their efforts. This model benefits both the product owner and the affiliate marketer, creating a mutually profitable relationship.

How It Works:

  • The merchant offers a product or service to be marketed.
  • The affiliate selects a product and promotes it via unique tracking links.
  • When a consumer clicks the link and makes a purchase, the affiliate earns a commission.

Key Players in Affiliate Marketing:

  1. Merchant: The product owner or company that sells the product or service.
  2. Affiliate: The marketer who promotes the product to potential customers.
  3. Consumer: The individual who makes the purchase based on the affiliate’s marketing efforts.

Affiliate marketing is unique because it allows businesses to reach new audiences without upfront costs, and it provides affiliates with the opportunity to earn income through their promotional efforts.

Affiliate Programs:

Program Type Description
Pay-Per-Sale (PPS) Affiliates earn a commission when a sale is completed through their link.
Pay-Per-Click (PPC) Affiliates earn money based on the number of clicks generated from their links.
Pay-Per-Lead (PPL) Affiliates earn a commission when a lead (e.g., form submission) is generated.