“A marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.”
Affiliate Marketing is a type of partnership marketing.
Let us try to understand the concept of Affiliate Marketing through a short story. Charlie and Deric are good friends who live in a small locality in Memphis. Charlie has recently shifted to the locality.
Deric wants to get a new video game and hence wants to generate some money for it. He decides to set up a lemonade stall where he is planning to sell lemonade for $1 each.
Since Charlie has been living in that locality for years, Deric asks him to bring his friends at the lemonade stall. They fix a deal at 20% of commission per customer he gets. This helps Deric get more customers and Charlie make a little extra pocket money. This is affiliate marketing.
Affiliate marketers help you increase your sales revenue either by drawing traffic to your site or by promoting your product from referrals for every lead or sale that is driven to your website through the affiliate marketer.