What is affiliate marketing?

Affiliate marketing is characterized as a performance-based marketing strategy where businesses incentivize affiliates for successfully driving traffic or generating sales through their marketing efforts. This model relies on a commission structure—affiliates earn a percentage of sales or a fixed fee when a referred customer takes a specific action, such as making a purchase or signing up for a service.

At its core, affiliate marketing creates a symbiotic relationship between businesses and affiliates. Businesses expand their reach and potential customer base without upfront advertising costs, while affiliates have the opportunity to earn revenue based on their marketing skills and efforts. The effectiveness of this approach is rooted in its ability to leverage various online platforms, such as blogs, websites, and social media, to attract and convert potential customers.

The other options focus on different marketing strategies that do not involve the performance-based compensation structure that is central to affiliate marketing. For instance, traditional advertising methods are typically more cost upfront without the performance incentives connected to affiliate programs. Email marketing and social media tactics also have distinct purposes focused on direct outreach and engagement but lack the affiliate commission mechanism that defines affiliate marketing.