Definition – What does Affiliate mean?
An Affiliate is an organization, company or an individual that markets other company services or products through their web-based application. In exchange for marketing their services or products, companies pay affiliates a commission for each sale they generate. Affiliate programs exist for different industries such a technology, travel, clothing and lots of different kinds of online services. This enables web publishers to promote specific services or products related to the content of their websites.
Glossary Web explains Affiliate
Affiliate marketing is a major type of PPS advertising since affiliates are only paid for sales they produce. Therefore, merchants offer affiliates high enough commissions in order to make it worthwhile for the publishers to run their own ads. The affiliate commissions vary widely between the industries and also depend on average sales amounts. High-margin products such as computer software may offers commission as high as 75%, while the low-margin commission product such as consumer electronics may offer a commission as low as 2%.
Affiliate programs provide free marketing for all kinds of merchants and an extra source of revenue for web publishers. While it is a win-to-win partnership, setting up an affiliate system to track sales and generate payments is a complicated process. Therefore most of the companies run their affiliate programs through the third-party e-commerce platform such as commission junction.