Affiliate marketing

Categories: A, SEO Glossary

Affiliate Marketing is a performance-based advertising strategy where independent marketers, known as affiliates, receive compensation under the cost per action (CPA) model. This financial model rewards affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts. The more effective an affiliate is at directing traffic and converting visitors into customers, the higher their earnings potential. For instance, a company may implement an affiliate program to encourage sign-ups for a particular service. Here, affiliates play a crucial role by funneling traffic towards the service and are remunerated with a commission for each successful sign-up they facilitate.