Affiliate marketing, or also frequently referred to as affiliate program, is an Internet-based marketing and sales solution. In an affiliate program of this kind, two websites enter into an advertising cooperation(affiliate relationship).
The provider (merchant) places its online advertising on the website of the partner (affiliate) and pays the latter an agreed commission for each contact, pay per impression ( PPI), each action, pay per action ( PPA), each qualitative contact, pay per lead ( PPL), or each sale concluded, pay per sale ( PPS), for example. There is also a Two-Tier Affiliate Program, where affiliates receive money for the number of sub-affiliates they acquire.
The Affiliate Revenue Model represents a special form of Performance-Based Marketing, or performance-based marketing. This type of commission system for promoting specific products or services is a widely used form by eCommerce companies.
The term affiliate stores refers to the partner websites connected as part of affiliate marketing. The term Affiliate Shops refers to the partner websites connected within the framework of Affiliate Marketing. The totality of all Affiliate Shops is the so-called Affiliate Network. Critical note: Unfortunately, spams such as redirects like doorway pages are often used in this business model. Likewise, there are always discrepancies between the partners regarding the billing of services.
A special form of affiliate is thin affiliate. These are websites that almost exclusively contain AdWords, but no usable information.