What is Affiliate Marketing?

In simple terms, affiliate marketing is the concept of selling or promoting something which you do not own and getting commissions for every sale you make. You must have seen advertisements on most of the websites you visit.

Consider a blog having an advertisement of a web hosting company. The blog owner (Affiliate) is actually promoting the web hosting company on his/her blog. If someone clicks on the advertisement then it’ll lead the person to the web hosting company website.

The advertisement link has an affiliate tracking code using which web hosting company (Advertiser) use to keep track of affiliates since there might be hundreds of affiliates promoting their product or services. If someone makes a purchase on the web hosting company then the affiliate is paid a pre-determined commission. Usually the commission is either a fixed amount or a percentage of the sale amount.