11. What is Affiliate Marketing?

Affiliate marketing is performance-based marketing wherein affiliates are rewarded by businesses or individuals, usually by payment of a commission, for introducing buyers of their products via the affiliate’s own marketing effort. Commissions can range from less than 5% (albeit rarely) to as much as 100% of the selling price of the product although in internet marketing 50% commission is generally the lowest acceptable rate of commission.

Affiliate marketing can overlap with other internet marketing methods because affiliates may promote their principal’s product(s) via other ‘standard’ advertising methods such as perhaps e-mail marketing, banner and display advertising, content marketing etc.

Affiliate marketing often is, but should not be confused with referral marketing, which is something entirely different.