Advertisers selling goods online can develop networks of ‘affiliates’ that put up banner advertisements or other links on their own websites in return for a proportion of the business generated for each sale, lead, action, or visitor generated. The merchants can offer commission to the affiliates based on each purchase that is made through the affiliates site, or on every visitors that visits merchant’s the site through the affiliate’s site.
Affiliate programs, also known as referral programs or partnership programs, involve the use of affiliates to help market a website's products and services in return for a payment for each sale, lead, action, or visitor generated. For example, sites may offer a commission payment based on a percentage of the revenue generated by purchases made by visitors coming from a specific site.
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