Browse Definitions :
Definition

affiliate marketing

Contributor(s): Corinne Bernstein

Affiliate marketing is a performance-based marketing strategy in which one company pays another for referred business. The main goal of affiliate marketing is for website owners to reach new markets.

This technique, used commonly in online marketing, involves revenue-sharing between website owners (i.e., online publishers or salespeople) and advertisers or merchants. In exchange for a share of the profits, the website owner places advertisements on the site either to help sell the merchant's products or to send potential customers to the merchant's website. Compensation is usually based on sales, clicks, registrations or a combination of these and other factors.

Affiliate marketing relies on first-party cookies that “remember” the link or ad on which a visitor to the site clicks, the time and date of the click, and what types of sites or content interest users. With affiliate marketing, no sales promotion is required.

Content quality is crucial in affiliate marketing. Using search engine optimization and researching the proper use of keywords can help convert website traffic to purchases and should be part of an affiliate marketing strategy. Additionally, affiliates need to continue posting fresh content to hold viewers’ attention.

Affiliate marketing takes a great deal of time and effort to establish. Choosing a popular, lucrative niche and fostering the right relationships is crucial. Although merchants can put their ads on many different websites -- some experts say more websites mean more exposure for merchants -- others maintain that when it comes to the number of partnerships, quality is more important than quantity.

A potential challenge can occur if an affiliate uses unsavory tactics to attract customers to a website or the site contains material that some might consider objectionable. Researching partners beforehand can help avoid this and other problems between partners such as an affiliate refusing to pay or moving or changing its site. Each party involved should try to ensure that the relationship is mutually beneficial.

Terms related to affiliate marketing include affiliate software, which companies use to create an affiliate program for their offerings; affiliate links, which track the progress of these programs; and affiliate ID, which is similar to an affiliate link and is used by some companies to track the progress of an affiliate program. 

This was last updated in June 2017

Continue Reading About affiliate marketing

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

How do you use affiliate marketing to expand your market reach?
Cancel

-ADS BY GOOGLE

Dateiendungen und Dateiformate

Gesponsert von:

SearchCompliance

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance framework

    A compliance framework is a structured set of guidelines that details an organization's processes for maintaining accordance with...

SearchSecurity

  • Trojan horse (computing)

    In computing, a Trojan horse is a program downloaded and installed on a computer that appears harmless, but is, in fact, ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • DNS over HTTPS (DoH)

    DNS over HTTPS (DoH) is a relatively new protocol that encrypts domain name system traffic by passing DNS queries through a ...

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification and is used in internally mounted ...

  • kilobyte (KB or Kbyte)

    A kilobyte (KB or Kbyte) is a unit of measurement for computer memory or data storage used by mathematics and computer science ...

  • virtual memory

    Virtual memory is a memory management capability of an operating system (OS) that uses hardware and software to allow a computer ...

Close