What is Affiliate Marketing?
A performance-based marketing model where businesses reward affiliates (partners) for each customer or sale generated through the affiliate's marketing efforts. Affiliates promote products using unique tracking links and earn commissions on resulting conversions.
Related Terms
Affiliate Link
A unique URL assigned to an affiliate that tracks clicks, leads, and sales back to that specific affiliate. When a user clicks an affiliate link and makes a purchase, the affiliate earns a commission. These links contain tracking parameters that identify the affiliate.
Commission
The payment an affiliate earns for generating a sale, lead, or action. Commissions can be a percentage of the sale price, a flat fee per action, or a recurring payment for subscription products. Commission structures vary widely across affiliate programs.
Conversion
The completion of a desired action by a referred visitor, such as making a purchase, signing up for a trial, or submitting a form. Conversion rate is the percentage of clicks that result in a qualifying action.