< Back to Glossary
video icon Marketing Terms

Affiliate Marketing

Affiliate marketing is a marketing strategy where an affiliate earns a commission for promoting another company’s product or service

What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing strategy where an affiliate (promoter) earns a commission for promoting another company’s (merchant’s) product or service. Here’s the breakdown:

  • Affiliates: These can be bloggers, influencers, YouTubers, or website owners who promote the merchant’s products.
  • Merchants: Businesses that offer their products or services through affiliate marketing programs.

How Does Affiliate Marketing Work?

  1. Join an Affiliate Program: Affiliates sign up for a merchant’s affiliate program, gaining access to marketing materials like banners, links, or discount codes.
  2. Promote the Products: Affiliates use these materials on their platforms (websites, social media) to recommend the merchant’s products to their audience.
  3. Track Sales: When a customer clicks on the affiliate’s unique link and makes a purchase, the sale is tracked.
  4. Earn Commissions: Affiliates earn a commission (percentage of the sale or a fixed amount) for each referred customer who completes a purchase.

Benefits of Affiliate Marketing

  • Merchants: Gain access to a wider audience through the affiliate’s network and only pay for successful conversions (sales).
  • Affiliates: Can earn income by promoting products they like and generate revenue from their existing audience.

Examples of Affiliate Marketing in Action

  • A fashion blogger promotes a clothing brand’s new collection using their affiliate link and earns a commission for each sale generated through their link.
  • A YouTuber creates a video review of a new tech gadget and includes an affiliate link in the description, earning a commission if viewers purchase the product through that link.

Getting Started with Affiliate Marketing

  • Choose a Niche: Select a niche relevant to your audience and interests to ensure product alignment.
  • Find Relevant Affiliate Programs: Research reputable merchants offering products you genuinely recommend.
  • Promote with Transparency: Disclose affiliate links and explain how you earn commissions to maintain audience trust.
  • Track Your Results: Monitor your affiliate marketing performance to see what strategies are most effective.


Join an exclusive community of 1 million+ marketers.

Get social media insider social media hints, tips & hacks straight to your inbox.

*I agree to join Plann’s mailing list and can unsubscribe at any time.

Stay In the know & grow your business

See how easy it is to build and grow a brand you’re proud of when we work together.