Affiliate Marketing is a performance-based marketing strategy in which external partners, known as affiliates, promote a company’s products or services and earn a commission for each conversion they drive. Conversions may include purchases, sign-ups, app installs, or other predefined actions.
Key components of Affiliate Marketing often include:
- Affiliate Partners: Individuals or organizations who promote a company’s offerings. These can range from influencers and bloggers to review sites and professional marketers.
- Tracking Infrastructure: Tools like affiliate links, cookies, and attribution models are used to monitor clicks, conversions, and ensure accurate commission payouts.
- Commission Structure: Affiliates are rewarded based on performance—typically a percentage of sales or a fixed fee per action. Clear terms and timely payments are critical to maintaining trust.
- Promotional Channels: Affiliates may use content marketing, SEO, social media, newsletters, or paid advertising to attract potential customers and drive conversions.
- Program Management: A central platform (like Kiflo) helps businesses manage affiliate relationships, track performance, handle payouts, and provide resources to help affiliates succeed.
Affiliate Marketing is widely used across e-commerce, SaaS, education, finance, and B2B industries. It helps companies tap into new audiences, expand reach with minimal upfront cost, and build long-term relationships with partners who act as extensions of the sales and marketing team.