What characterizes affiliate marketing?

Affiliate marketing is characterized by its unique structure where affiliates earn commissions based on the traffic or sales they generate for a business. When affiliates promote a company’s products or services, they receive a reward each time their marketing efforts result in a sale or lead. This performance-based model aligns the interests of the company and the affiliate, as both benefit from increased sales or leads, fostering a partnership that is central to the affiliate marketing strategy.

In contrast, traditional advertising methods do not typically involve such a direct reward system tied to performance. Similarly, a flat fee payment structure does not incentivize affiliates based on their effectiveness in driving traffic or conversions. Finally, focusing on in-store promotions does not align with the digital and often online nature of affiliate marketing, which usually occurs through various online platforms and channels.