1 Learn the concept
Affiliate marketing is a performance-based model in which a business rewards partners, called affiliates, for customers or sales they bring. Instead of paying for ads up front, the business pays only when a defined result happens. This lesson explains how affiliate marketing is defined and the basic concepts for how businesses can use it.
2 See it in action
- The business pays a commission when an affiliate drives a sale or lead.
- Affiliates promote using unique tracked links.
- It is performance-based, so cost is tied to results.
- It suits businesses with products people recommend to others.
Worked example
A commission example
Product: a $80 pair of running shoes. Commission: 8 percent.
Sales in a month through one blogger: 25.
Revenue: 25 x $80 = $2,000. Commission: 2,000 x 0.08 = $160.
Merchant view: $2,000 in sales for $160 in commission, paid only after sales.
Check: confirm how returns affect commission.
3 Study an example
Example scenario
A kitchen brand lets food bloggers share a unique link to its knives. When a reader buys, the blogger earns a commission and the brand pays only for actual sales.
4 Apply it and download
- Describe a business that could use affiliates.
- Say what a fair commission could be.
- Outline the basic flow from click to payment.
Worksheet Affiliate program launch checklistOpen, print or save as PDF