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Affiliate marketing is a type of performance-based marketing where businesses or individuals (known as affiliates or publishers) earn a commission by promoting other company's products or services and driving sales or leads to the merchant's website.

Here's how affiliate marketing typically works:

1. Affiliate/Publisher: An individual or entity (the affiliate) signs up for an affiliate program offered by a merchant. The affiliate promotes the merchant's products or services using unique tracking links or codes.

2. Merchant/Advertiser: The merchant provides the affiliate with specific tracking links or codes that are unique to them. These links are used by the affiliate to promote the merchant's products or services.

3. Promotion and Marketing: The affiliate promotes the merchant's products or services through various channels such as websites, blogs, social media, email marketing, videos, or other online platforms.

4. Customer Engagement: When a consumer clicks on the affiliate's unique link and makes a purchase or completes a desired action (such as signing up for a service or filling out a form), the tracking link records the referral and attributes the sale or lead to the affiliate.

5. Commission Payment: The merchant tracks the sales or leads generated by the affiliate's referrals through the unique tracking links. The affiliate earns a commission for each successful sale or action based on the terms outlined in the affiliate agreement. Commissions can be based on a percentage of the sale amount, a fixed amount per sale, or other arrangements.

6. Affiliate Networks: In some cases, there are affiliate networks that act as intermediaries between affiliates and merchants. These networks manage the tracking, reporting, and payments, offering a platform where affiliates can find various merchants to promote.

Affiliate marketing benefits all parties involved:

• Merchants: Gain additional sales and leads through the efforts of affiliates without upfront marketing costs. They pay commissions only for successful conversions.

• Affiliates: Earn commissions for promoting products or services without the need to create their own products. Affiliates can monetize their online presence or marketing efforts.

• Consumers: Often receive valuable information, reviews, or recommendations from affiliates, helping them make informed purchasing decisions.

Affiliate marketing is a widely used strategy in the digital marketing landscape, allowing businesses to expand their reach and sales while providing opportunities for individuals to earn income through online promotion and marketing efforts.