What is affiliate marketing?

Affiliate marketing is a performance-based digital marketing strategy where an affiliate (publisher) promotes a merchant’s products or services and earns a commission for each sale or conversion generated through their unique affiliate link.

What is the origin and history of affiliate marketing?

• 1994: PC Flowers & Gifts launched the first affiliate program, acquiring over 2,000 affiliates within a year.
• 1996: Amazon introduced its associate program (Amazon Associates), which became a model for modern affiliate programs.
• Web 2.0 Era: The rise of user-generated content, blogs, and social media allowed individuals to become affiliates, expanding the model beyond businesses.

How does affiliate marketing work?

1. The merchant (advertiser) creates an affiliate program and provides promotional assets (links, banners).
2. The affiliate (publisher) joins the program and receives a unique tracking link.
3. The affiliate promotes the merchant’s products on their website, blog, social media, or email list.
4. A digital buyer clicks the affiliate link, which places a tracking cookie in their browser.
5. If the buyer completes a purchase within the cookie duration, the sale is attributed to the affiliate.
6. The affiliate earns a pre-agreed commission (percentage or fixed fee) from the merchant.

What are the key roles in affiliate marketing?

• Merchant (Advertiser): The business that sells products/services and runs the affiliate program.
• Affiliate (Publisher): The individual or entity that promotes the merchant’s offerings for a commission.
• Affiliate Network: Optional third-party platform (e.g., ShareASale, CJ Affiliate) that manages tracking, payments, and program catalogs.
• Digital Buyer: The end consumer who clicks an affiliate link and makes a purchase.

How do digital buyers influence affiliate marketing?

• Showrooming & Webrooming: Buyers research products online before purchasing, often relying on reviews and recommendations.
• Trust in Influencers: Affiliates with established audiences (bloggers, influencers) leverage trust to drive conversions.
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