A performance-based online marketing arrangement. Independent contractors called
affiliates place links on their website which
refer visitors to other websites selling specific products or services.
Affiliate marketing is 100% performance-based so an affiliate is paid on either a pay-per-click, pay-per-lead or a pay-per-sale basis. On pay-per-sale arrangements, commissions can vary from as low as 1% to as high as 60% or more.
Affiliate activity and commissions are tracked by an
affiliate manager or an
affiliate network and affiliates are paid according the agreed upon activity (either click-throughs, leads or sales) generated by their advertising links.
