Affiliate marketing is the pay-for-performance acquisition channel where third parties earn commission for driving qualifying actions, typically sales or signups. Affiliates promote the product through their channels (websites, content, social media, email lists) and receive a percentage of revenue or fixed fee per conversion generated, tracked through unique referral links or codes. It's the original performance-based marketing channel, predating digital advertising, and remains a significant acquisition source for many B2C and some B2B businesses.
How affiliate marketing works: