What is an affiliate program?

An affiliate program is a marketing arrangement where a business rewards external partners, known as affiliates, for generating traffic or sales through the affiliate's marketing efforts. Affiliates promote the company's products or services using special tracking links and earn a commission for each sale, lead, or specific action completed by referred customers. This model benefits both the business, which gains more exposure and sales, and the affiliate, who earns passive income. Affiliate programs are common in e-commerce and online services because they offer a cost-effective way to expand market reach.