Affiliate marketing is a performance-based marketing strategy where an individual or entity, known as an affiliate marketer, promotes products or services offered by other companies or individuals. In return for their promotional efforts, affiliates earn a commission based on the successful sale or specified actions (such as clicks, sign-ups, or purchases) generated through their marketing activities.

For businesses or product owners, implementing an affiliate marketing program provides an additional channel to drive sales and attract customers. This model leverages the marketing reach and efforts of affiliates, potentially leading to a significant increase in customer acquisition. In the U.S., affiliate marketing expenditures have grown substantially, reaching $8.2 billion in 2022, up from $5.4 billion in 2017, highlighting its effectiveness as a marketing strategy.

For affiliate marketers, this model offers the advantage of focusing solely on marketing without the burdens of managing customer service, product fulfillment, or returns. Affiliates receive a unique tracking or affiliate link from the program they are promoting, and their primary responsibility is to drive targeted traffic to the affiliate offers. With effective marketing strategies and well-optimized funnels, affiliates can generate passive income from their promotional activities.