Affiliate marketing is a form of performance-based marketing where an affiliate earns a commission by promoting another company’s products or services. Here’s a breakdown of the key aspects:

How Affiliate Marketing Works:

1. Merchant (Company): Creates a product or service and establishes an affiliate program.
2. Affiliate (Publisher): Joins the affiliate program, receives a unique affiliate link or code, and promotes the product or service.
3. Customer: Clicks the affiliate link, makes a purchase, or completes a desired action (e.g., fills out a form).
4. Commission: The affiliate earns a percentage of the sale or revenue generated from the customer’s action.

Benefits:

1. Low-Cost Advertising: Affiliates only pay for results (commissions), making it a cost-effective marketing strategy.
2. Passive Income: Affiliates can earn money without directly handling products or providing customer support.
3. Flexibility: Affiliates can promote products from various merchants, diversifying their income streams.