Marketing & Advertisingintermediate
Affiliate Marketing
Definition
A performance-based model where you pay a commission to a third party (affiliate) for every sale or lead they send you. The affiliate promotes your product through their own channels.
Why it matters
Affiliate marketing is risk-free acquisition. You only pay when results are delivered. It turns other people's audiences into your sales channel without upfront ad spend.
Example
You create an affiliate programme paying 15% commission. A blogger with 80,000 readers promotes your product, generates 40 sales at £50 each. They earn £300; you earn £1,700 in new revenue.
Related terms
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