What is affiliate marketing

 Affiliate marketing is a business model where individuals or entities (affiliates) earn a commission by promoting products or services of other companies. The process typically involves four parties: the merchant or advertiser, the affiliate, the customer, and the affiliate network or platform.

Here's how affiliate marketing generally works:

  1. The merchant/advertiser: This is the company or individual that sells a product or service. They create an affiliate program to encourage others to promote their offerings. The merchant sets the commission structure and provides the affiliate with unique tracking links or codes.

  2. The affiliate: The affiliate is the person or entity that promotes the merchant's products or services on their website, blog, social media, or other marketing channels. They sign up for the affiliate program, obtain the affiliate links, and incorporate them into their promotional content.

  3. The customer: When a customer clicks on the affiliate's unique link and makes a purchase or performs a specific action (such as signing up for a service), the affiliate is credited for the referral. The customer doesn't pay anything extra, but the affiliate earns a commission based on the agreed-upon terms.

  4. The affiliate network/platform: In many cases, there's an intermediary platform or network that facilitates the relationship between the merchant and the affiliate. These platforms provide tracking, reporting, and payment functionalities, making it easier for both parties to manage the affiliate marketing process.

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