Affiliates are individuals or companies that market other parties' products or services and are compensated with commissions from sales generated through their marketing efforts. In the affiliate marketing model, marketers (merchants) establish affiliate programs that allow external parties (affiliates/publishers) to market their products or services. The affiliate then promotes the product through various channels such as websites, blogs, social media, or advertisements. Every time a customer purchases a product or uses a service through the affiliate's link or marketing efforts, the affiliate will receive a commission from the marketer. The commission is usually calculated as a percentage of sales or a flat fee per transaction.
Some of the advantages of affiliate marketing include:
- Marketers only pay when actual sales occur.
- Affiliates are motivated to promote the product effectively.
- Increased exposure and marketing reach of the product.