Affiliate marketing is a working relationship whereby a merchant (online shop or advertiser) has consumers driven to it by adverts on an affiliate (website). If a consumer visiting the affiliate’s site clicks on an advertisement and goes on to perform a predetermined action (usually a purchase) on the advertiser’s site then the affiliate receives a payment. This predetermined action can range from a sale to a referral, a newsletter sign-up to a click. It is this cost per action model that defines affiliate marketing and sets it apart from other channels.
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