Affiliate marketing is a performance-based marketing strategy where a business rewards affiliates for each customer brought about by the affiliate's marketing efforts.
- Merchant: The company selling the product or service
- Affiliate: The marketer promoting the product
- Product or Service: The offering being promoted
- Commission: The reward for successful referrals
Example 1: Product Review Blog
<a href="https://example.com/product?ref=affiliateID">Buy Now</a>
Example 2: Social Media Influencer
<a href="https://example.com/product?ref=affiliateID">Get 20% Off with code INFLUENCER20</a>
Benefits
- Cost-effective marketing
- Increased brand reach
- Performance-based model
- Passive income potential
Challenges
- Tracking and attribution
- Managing multiple affiliates
- Maintaining brand consistency
- Complying with regulations