Affiliate Marketing is the corporation based on a partnership between an advertiser and a site operator. The site operator provides space on his website for advertising, which can be filled with banners or links that lead to the online shop of the advertiser to directly reach the specific addresses. As a counter move the site operator gets a commission that is based on various criteria.
That commission must be paid if the link that was put on the site operator’s website leads to success for the advertiser. This commission can be counted in different ways: cost-per-click, cost-per-lead, cost-per-order or cost-per-sale. To find out which link the (potential) customer followed, they are all individually marked so the advertiser knows whom to pay the commission.
There is also the possibility to use affiliate-networks which work as intermediaries between the site operator and the advertiser. The affiliate-networks also get a percentage of the commission, which is often 30% of the commission.