What is Affiliate Marketing?

SEO and Marketing Terms: Affiliate Marketing

Affiliate marketing lets businesses reach potential customers through independent partners, often called affiliates or publishers. Those partners promote the business through channels such as websites, newsletters, social media, videos, and comparison guides.

The business defines which actions qualify for payment and how referrals will be tracked. Affiliates commonly receive unique tracking links, although programs may also use referral codes or other attribution methods.

How are affiliates paid?

Payment models vary. An affiliate might earn a percentage of a sale, a fixed amount for a qualified lead, or payment for another agreed action. Some programs also use click-based payments.

A sale-based program typically works like this:

1. An affiliate shares a tracked link.
2. A potential customer follows it and makes a qualifying purchase.
3. The program attributes and validates the transaction.
4. The affiliate receives the agreed commission under the program’s payment terms.

Why do businesses use affiliate marketing?

Commission-only programs can connect acquisition spending more closely to measurable results. Affiliates also bring their own audiences, content, and distribution channels. That doesn’t make every program free of upfront or ongoing costs. Network fees, platform charges, management costs, and separately negotiated placements may apply.

Businesses also need clear rules for attribution, eligible transactions, returns, fraud, and promotional methods. Affiliate marketing works best when the program rewards useful referrals while protecting customer trust and sustainable margins.