What is affiliate marketing?

Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates for generating traffic or sales to their products or services. This involves affiliates promoting a company’s offerings through their own marketing channels, such as websites, blogs, or social media. When a customer makes a purchase or completes a specified action (like signing up for a newsletter) via the affiliate's promotional links, the affiliate receives a commission or financial reward.

This model is particularly appealing to businesses because it allows them to expand their reach and generate sales without upfront costs. Instead, companies only pay for actual results (sales or leads), which makes it a low-risk way to increase brand awareness and drive revenue. Affiliate marketing leverages the power of partnerships, enabling businesses to tap into the existing audiences of affiliates, which can lead to higher conversion rates.

In contrast, other options such as creating viral marketing campaigns, traditional marketing with fixed payments, or enhancing public relations do not encapsulate the essence of affiliate marketing and its performance-based nature.