Definition of Affiliate Marketing

Affiliate Marketing refers to an arrangement between E-Commerce individuals and Website owners in which revenue sharing takes place based upon a link formed between the two. The payment is based upon specific performance measures as agreed to from the onset of the relationship or affiliation between the two parties involved. This might involve registrations that the affiliate refers, a specified number of sales, or the number of clicks generated from the Website.

The two companies or individuals have an arrangement that states that the E-Commerce Website will pay a commission or fee to the second Website if someone clicks from their site to the E-Commerce site and buys something. An arrangement is set up. Software tracks and reports the “commission-based” clicks, sales, or registrations. The primary purpose of affiliate marketing is to extend the reach of the E-Commerce Website in order to gain an increase in revenue or sales.

External links:

• Wikipedia explanation of affiliate marketing
• Affiliate Programs Directory
• Affiliate Marketing UK
• Affiliate Marketing Forum