Affiliate marketing refers to an arrangement between an online merchant and an affiliate, where the affiliate earns a commission for creating sales, leads and clicks for the web site of the online merchant.
Affiliate marketing operates in a win-win situation for merchant and affiliate. The merchant gets the opportunity to advertise his products for free in front of a larger market which results in increase of sales. The more hard-working affiliates the merchant gets, the more sales he can expect to come back to him. By engaging affiliates to market the products and services, the merchant is saving time, effort and money in looking for eligible markets and customers. When a client clicks on the provided link in the affiliate website subsequently purchases the product, the site recommends it to other users who are looking for the same item or buys that product again.