What does affiliate program mean?

An affiliate program is a marketing arrangement where a business rewards affiliates (partners or individuals) for generating traffic or sales through their marketing efforts. Affiliates promote the business’s products or services, and when someone makes a purchase or takes a specific action (like signing up for a newsletter) through the affiliate’s referral link, the affiliate earns a commission.

Here’s how it typically works:

1. Affiliate joins a program: A person signs up for the affiliate program of a business.
2. Promotion: The affiliate promotes the business’s products or services, usually via unique referral links, on their website, social media, or other platforms.
3. Customer action: When someone clicks the affiliate’s link and completes a specific action (like making a purchase or signing up), it’s tracked by the business.
4. Commission: The affiliate receives a commission, usually a percentage of the sale or a fixed amount.

This model benefits both the business (increased sales) and the affiliate (commissions without needing to create or sell their own product). It’s common in industries like e-commerce, digital products, and web hosting.