What is affiliate marketing?

Affiliate marketing is fundamentally a performance-based strategy where affiliates earn rewards, usually a commission, for driving traffic or sales to a merchant’s website. This system typically involves tracking links that allow businesses to see how much traffic or how many sales are generated by each affiliate. Affiliates promote products or services to their audience through various channels, such as blogs, social media, or websites, thereby creating a win-win scenario where both parties benefit: the affiliate earns income, and the business gains increased exposure and potential sales without upfront advertising costs.

In contrast, traditional advertising methods that rely on print media are distinct from affiliate marketing because they do not involve a performance-based compensation structure, nor do they typically provide the same measurable outcomes driven by affiliate strategies. Similarly, a direct sales strategy that does not involve online engagement does not align with the principles of affiliate marketing, which is primarily focused on digital platforms. Lastly, product placement in entertainment is a different approach entirely, involving the integration of products within media content rather than a structured affiliate program rewarding affiliates for performance-based actions. This highlights the unique and strategic nature of affiliate marketing in contemporary digital marketing practices.