Affiliate Marketing is a marketing tactic where a business rewards affiliates for each customer, visitor or transaction brought in by the affiliates own marketing efforts.
In essence, the affiliate marketers do all the hard work for a piece of the action. In fact, they may be doing a lot of the same things that the merchant is doing. These marketing initiatives can include email marketing (email blasts), paid search engine marketing (PPC), organic search engine optimization (SEO) and possibly display ads. Regardless of the advertising method used, the end goal is to convert leads for the retailer by using the affiliates network.
This can be confusing for people new to affiliate marketing. Let's try another example.