An affiliate is a person or entity that promotes products or services for another company in exchange for a commission on sales or leads generated from their promotional efforts.
This relationship allows affiliates to earn money by leveraging their audience or platform to drive sales for the partner company.
For example, a blogger may become an affiliate for a book retailer, sharing special links to the retailer’s site; when their readers click through and make a purchase, the blogger earns a commission.
This marketing strategy benefits both parties: the affiliate earns from their promotional activities without needing to create a product, and the company gains increased exposure and sales through the affiliate’s network.
Affiliates typically use various channels for promotion, including websites, blogs, social media, and email marketing campaigns.
To track sales or leads generated by an affiliate, companies use unique affiliate links or codes that identify the source of the new customer.
This ensures that affiliates are properly credited and paid for the business they bring in.
The terms of an affiliate program, including commission rates and payment schedules, are outlined in an agreement between the affiliate and the company.
Affiliate marketing is popular in many industries, from retail and e-commerce to software and services, because it’s a cost-effective way for companies to expand their reach.
