Affiliate marketing is a type of performance-based marketing in which a business rewards affiliates for each visitor or customer brought by the affiliate's marketing efforts. It involves three main parties: the merchant (advertiser), the affiliate (publisher), and the customer (consumer).
Through affiliate marketing, companies can leverage a wider network of marketers to promote their products, while affiliates can earn income by recommending products they believe in. It is a cost-effective method for businesses to expand their reach and for affiliates to monetize their audience. In the SaaS ecosystem, affiliate marketing is particularly effective due to recurring revenue models and high customer lifetime values.
The industry has evolved to include sophisticated tracking technologies, fraud prevention measures, and compliance frameworks. Modern affiliate marketing encompasses various channels including content marketing, social media promotion, email campaigns, comparison sites, and influencer partnerships. Performance metrics extend beyond simple sales to include trial sign-ups, demo requests, and customer engagement indicators that predict long-term success.