Affiliate Marketing describes the process of earning a commission by promoting products. By promoting a product to others, the affiliate earns a piece of the profit for each sale made that can directly be related to the affiliate.
Affiliate Marketing is based on an agreement between two parties, the Merchant and the Affiliate.
- The Merchant: The creator, the seller, the brand, the retailer, or the vendor. This is the party that creates the product.
- The Affiliate: This party is sometimes also known as the publisher. Affiliates can be single individuals, often Influencers or Micro-Influencers, as well as companies.
Affiliate Marketing is performance-based. Affiliates only get paid when their promotional efforts actually result in a transaction.