Affiliate marketing is a promotional model where an independent website or company partners with a merchant or retailer to earn commissions by referring traffic or customers.
Some examples of affiliate marketing:
- A blogger includes special links to products within their content. If readers purchase after clicking, the blogger earns a % of the sale from the retailer.
- An influencer posts a photo on Instagram using a branded hashtag or promo code. They receive a tracked affiliate commission from the brand for any resulting user purchases.
- A company places banner or text ads on their site promoting a service they are affiliated with. When site visitors sign up for that service after clicking an ad, the company logs the referral and earns money.
- A YouTube creator has a trackable affiliate link in their video description to products related to their channel content. They earn commissions for referrals.
- An app pushes notifications highlighting sales from an integrated retail affiliate program. The app developer earns for store referrals.
In each case, the referring affiliate earns income without needing to sell, carry inventory, provide customer service, or fulfill orders themselves. The merchant handles the sales process.