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Affiliate Basics

Affiliate Marketing

A performance-based marketing strategy where businesses reward affiliates for each customer brought through the affiliate's marketing efforts.
Updated 1/15/2025
2 examples

Affiliate Marketing

Affiliate marketing is a performance-based marketing strategy where businesses (merchants) partner with individuals or companies (affiliates) to promote their products or services. Affiliates earn commissions for each successful referral, sale, or action generated through their marketing efforts.

How Affiliate Marketing Works

  1. Partnership Formation: Merchants create affiliate programs and recruit affiliates
  2. Unique Tracking: Each affiliate receives unique tracking links or codes
  3. Promotion: Affiliates promote the merchant's products through various channels
  4. Attribution: Sales and actions are tracked back to specific affiliates
  5. Commission Payment: Affiliates receive compensation based on performance

Key Benefits

For Merchants

  • Cost-effective: Only pay for actual results
  • Expanded reach: Access to new audiences and markets
  • Risk reduction: Lower upfront marketing costs
  • Scalable growth: Grow your marketing team without hiring

For Affiliates

  • Passive income potential: Earn money from existing audience
  • Flexibility: Work from anywhere, anytime
  • No inventory: Promote without holding stock
  • Multiple revenue streams: Partner with multiple merchants

Types of Affiliate Marketing

  • Pay-per-sale: Commission based on completed purchases
  • Pay-per-lead: Payment for qualified leads or sign-ups
  • Pay-per-click: Compensation for traffic generation
  • Recurring commissions: Ongoing payments for subscription-based services

Getting Started with LinkJolt

LinkJolt makes affiliate marketing simple for SaaS companies with:

  • Zero transaction fees
  • Real-time tracking and analytics
  • Automated commission calculations
  • Direct Stripe Connect payouts
  • Advanced fraud protection
Examples
1

A SaaS company pays affiliates 30% commission for each new customer they refer

2

A blogger promotes project management software and earns $50 for each sign-up

Next

Affiliate

Table of Contents
Affiliate MarketingHow Affiliate Marketing WorksKey BenefitsFor MerchantsFor AffiliatesTypes of Affiliate MarketingGetting Started with LinkJolt
Related Terms

Affiliate

An individual or company that promotes another business's products or services i...

Commission

The payment or percentage of sale that an affiliate earns for successfully promo...

Tracking Link

A unique URL that identifies and tracks traffic, clicks, and conversions from a ...

Merchant

The business or company that sells products or services and partners with affili...
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