How does affiliate marketing work?

Affiliate marketing is a performance-based marketing strategy, wherein an individual or business promotes another company's products or services in exchange for a commission on each sale or lead generated through their referral. The process typically involves three key parties: the merchant, the affiliate, and the consumer. The merchant is the company that offers the products or services, the affiliate acts as a promoter and directs potential customers to the merchant through various marketing channels, and the consumer is the person who ultimately makes a purchase. Affiliates use unique tracking links or codes to ensure sales or leads are attributed to their efforts, and they earn a commission for successfully facilitating a transaction. This mutually beneficial arrangement allows businesses to expand their reach and increase sales while affiliates have the opportunity to earn passive income by leveraging their influence or marketing skills.

This mind map was published on 2 August 2023 and has been viewed 74 times.