Affiliate marketing is a type of performance-based marketing in which a business rewards its affiliates for each customer brought in through the affiliate's own marketing efforts. Affiliates are typically individuals or companies that promote products or services on their own platforms, such as websites, social media channels, or email lists.
When a customer clicks on an affiliate's unique tracking link and makes a purchase or completes a desired action, such as signing up for a newsletter or filling out a form, the affiliate earns a commission. The commission rate and payment terms are typically agreed upon between the business and the affiliate before the promotion begins.
Affiliate marketing can be a win-win situation for both the business and the affiliate. The business is able to expand its reach and increase sales through the affiliate's promotion, while the affiliate can earn a passive income by promoting products or services they believe in.