What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing strategy where individuals or entities, known as affiliates, promote a company's products or services to earn a commission. Affiliates use unique referral links or codes to share these offerings with their audience through blogs, social media posts, emails, or other channels. When someone makes a purchase or completes a desired action using the affiliate's link, the affiliate earns a percentage of the sale or a predetermined fee.

Think of affiliate marketing like a real estate agent selling houses. The agent doesn't own the houses but promotes them to potential buyers. When a sale is made through their efforts, they earn a commission from the homeowner. Similarly, affiliates don't own the products they promote but earn a commission when their promotion leads to a sale.

Let's understand it with a real world scenario:

A fitness influencer partners with a nutrition supplement company. They share a special discount code and referral link with their followers in their workout videos and social media posts. Every time a follower purchases supplements using that link or code, the influencer earns a commission. This arrangement helps the company increase sales and allows the influencer to monetize their content by promoting products that align with their brand.