An Affiliate Program is a performance-based marketing strategy where brands partner with affiliates (individuals or companies) to promote their products or services. Affiliates earn commissions based on the traffic, leads, or sales they generate for the brand through referral links.

Why it’s important: Affiliate programs are highly cost-effective for brands, as they only pay affiliates when specific actions (such as purchases or sign-ups) occur. This makes it a low-risk way to expand a brand’s reach and increase sales.

How affiliate programs work:

• Affiliates receive unique referral links to promote the brand’s products.
• Customers who click on the affiliate’s link and make a purchase generate a commission for the affiliate.
• The brand tracks these referrals and pays the affiliate based on their performance.

Affiliate programs are widely used in e-commerce and digital marketing to drive sales while rewarding affiliates for their efforts.