Affiliate Marketing

Definition:

A marketing strategy where a company pays a commission to affiliates for promoting their products or services

Example:

Let’s say a company sells sports equipment and wants to promote its products to a wider audience. The company decides to use an affiliate marketing program, where it pays a commission to affiliates who refer customers to its website and make a purchase.

The company sets up an affiliate program and provides a unique affiliate link to each affiliate. The affiliates then promote the company’s products through various channels such as social media, blogs, or email marketing using their affiliate link. When a customer clicks on an affiliate link and makes a purchase, the affiliate earns a commission on the sale.

For instance, a popular fitness blogger might promote the company’s sports equipment on their blog by writing a review of the products and including an affiliate link. When their readers click on the affiliate link and make a purchase, the blogger earns a commission from the sale.

In this way, the company can reach a wider audience, and the affiliates earn a commission for promoting the company’s products.