What is affiliate marketing?

Affiliate marketing is a performance-based marketing strategy where individuals (affiliates) promote products or services offered by other companies. The affiliates earn a commission for each sale, or sometimes leads, generated through their marketing efforts and referrals. This model allows businesses to leverage the reach of affiliates to increase their sales without upfront costs for traditional advertising. Affiliates usually utilize unique tracking links to direct potential customers to the merchant's website, ensuring that they are credited for any sales made.

This approach is beneficial for both the merchant—who gets increased traffic and potential sales—and the affiliate—who earns revenue for their promotional efforts. By focusing on commission-based earnings, the system incentivizes affiliates to optimize their marketing techniques and effectively target audiences, ultimately driving more conversions.