• Commission Structure: Affiliates earn commissions based on the predefined compensation model, which can include pay-per-sale, pay-per-click, or pay-per-lead models.

  • Pay-Per-Click (PPC): Affiliates earn a fee for each click generated through their referral link.

  • Pay-Per-Leads (PPL): Affiliates earn a commission for each lead or sign-up generated through their referral link.

  • Pay-Per-Sale (PPS): Affiliates earn a percentage of the sale made through their referral link.

• Affiliate Networks: Platforms that connect businesses with a network of affiliates. Affiliate networks handle tracking, reporting, and payments, making it easier for businesses to manage affiliate programs and for affiliates to find opportunities.

• Marketing Materials: Businesses provide affiliates with promotional materials such as banners, text links, product information, and creative assets to help them effectively market the products or services.

• Payment and Payouts: Affiliates receive payments based on the performance metrics (clicks, leads, or sales) as agreed upon in the affiliate program. Payment schedules and methods vary and can include direct deposits, checks, or payments through affiliate networks.

• Compliance and Guidelines: Businesses often set rules and guidelines for affiliates to ensure that marketing practices align with the brand's standards and legal requirements. This includes adhering to advertising regulations and avoiding deceptive practices.

In summary, affiliate marketing is a mutually beneficial arrangement where businesses leverage affiliates to promote their products or services in exchange for performance-based commissions. It provides a cost-effective way for businesses to expand their reach and for affiliates to earn income by driving traffic, leads, or sales.