Affiliate Marketing

A type of performance-based marketing where advertisers pay commissions to affiliates for driving traffic or sales.

View Full Glossary
Advertising Glossary

What Is Affiliate Marketing?

Affiliate marketing is a type of performance-based marketing in which advertisers pay commissions to affiliates for driving traffic or sales to their website or product. It is a mutually beneficial relationship in which both the advertiser and the affiliate earn a profit.

In affiliate marketing, an advertiser or merchant creates an affiliate program that allows individuals or companies to sign up to promote their products or services. The affiliates, also known as publishers or partners, then promote the advertiser's products or services through various channels, such as their website, blog, social media, or email marketing.

The affiliate earns a commission for each sale or lead generated through their unique affiliate link or code. The commission rate can vary depending on the advertiser and the product or service being promoted, but typically ranges from 5% to 50% of the sale price.

Affiliate marketing is popular because it offers a low-risk and cost-effective way for advertisers to reach a broader audience and increase their sales. Advertisers only pay for the actual conversions they receive, which means they are not paying for ad impressions or clicks that do not result in a sale.

For affiliates, affiliate marketing provides a way to monetize their website or social media channels by promoting products or services that are relevant to their audience. By partnering with reputable advertisers, affiliates can also build trust and loyalty with their audience, leading to increased traffic and revenue over time.

One of the key benefits of affiliate marketing is its flexibility. Affiliates can promote multiple products or services from different advertisers, and advertisers can work with multiple affiliates to reach a broader audience.

Overall, affiliate marketing is a popular and effective way for advertisers to reach new customers and for affiliates to monetize their online presence. It is a win-win situation that has become an integral part of the digital marketing landscape.