Get a FREE copy of Affiliate Masters Course
What is Affiliate Marketing?

Affiliate marketing is a way for merchants that sell products or services to pay independent parties that promote their products or services for any sales or leads made. This “pay-for-performance” model is in essence a commission or “finders’-fee”, where individuals who introduce new clients to a business are compensated. The difference in the case of affiliate marketing is that advertisers only pay their publishers when the new client introduction results in a sale or a lead, making it a low-risk, high-reward environment for both parties.


How Does It Work?

Advertisers make links available for placement by publishers. Each link is assigned a commission, such as a fixed amount per lead or a percentage of a resulting sale on the advertiser's Web site.

Publishers looking to monetize their traffic apply to join an advertiser's program. Upon acceptance, the publishers select and place the advertiser's links on their Web sites, in their email campaigns or as part of search listings.

When a consumer clicks on a publisher's link, a cookie is set on the visitor's browser that identifies the advertiser, the publisher, and the specific link and payment rates. When the visitor makes an actual purchase online or fills out a form, that transaction is tracked and recorded by either the advertiser if the manage their own affiliate program or by an affiliate broker. Most firms use an affiliate broker that keeps track of all the collections and processing required to ensure fair and timely commission payment for the publisher, and all of the administration and verification necessary to ensure quality sales and leads for the advertiser.