As you probably already know, online Affiliate Marketing is a type of performance-based marketing. It consists of displaying a product or service to influence web users.
In other words, it means that you only get paid when a visitor completes a desired action (i.e., registers on a site, pays for something, etc.) and that is what’s called a conversion.
Desired goals may vary, but the most common is to convert a web visitor into a paying customer.
The entity paying the affiliate for each conversion is the provider of an offer (also known as the sponsor). It’s a company that has something to sell and needs someone to promote it.
Sponsors typically deal with affiliates through an affiliation program which allows would-be affiliates to advertise their offers for a commission in return. This commission may be paid per click, per action (Lead), per sale, or even Revshare – which is a shared percentage of revenue earned.
Here’s a little diagram that illustrates Affiliate Marketing below:
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