Affiliate Marketing Service Definition

The sales are tracked via affiliate links from one website to another.

Affiliate marketing service definition. Affiliate marketing is an advertising model in which a company compensates third party publishers to generate traffic or leads to the company s products and services. The third party publishers are. The affiliate promotes the product of an entrepreneur company in exchange for a commission for each sale or action carried out. Affiliate marketing while often referred to as a channel is really a model or framework that makes it possible for brands to partner with individuals or companies referred to as affiliates partners and publishers to track and measure their performance and do so in an efficient scalable and cost effective way.

Affiliate marketing is the process by which an affiliate earns a commission for marketing another person s or company s products. To fully understand what is affiliate marketing and how it works it is critical to know a few basic terms used in the industry. Affiliate marketing is commonly confused with referral marketing as both forms of marketing use third parties to drive sales to the retailer. The affiliate simply searches for a product they enjoy then promotes that product and earns a piece of the profit from each sale they make.

Learn more with our list of best business books of all time. Affiliate marketing works in the following way. The two forms of marketing are differentiated however in how they drive sales where affiliate marketing relies purely on financial motivations while referral marketing relies more on trust and. Despite appearing a novelty this business model emerged in the 1990s when amazon the us giant in the retail segment began making the service available to anyone who wanted to publicize the products available in the store.

Here s a list of the basic affiliate marketing terms that will help you understand the rest of the guide.