What defines affiliate marketing?

Affiliate marketing is best defined as a performance-based marketing strategy that incentivizes affiliates to drive traffic or sales to a merchant's site. This approach is characterized by affiliates being rewarded based on their performance, usually through commissions or payments whenever their marketing efforts result in successful transactions or leads.

In this model, businesses do not pay upfront costs for advertising; instead, they compensate affiliates after customers are brought to their product or service. This aligns the interests of both parties, as affiliates focus on effective marketing strategies to attract customers, knowing their earnings depend on performance.

Other choices highlight different marketing strategies that do not capture the essence of affiliate marketing. For instance, selling products exclusively through others emphasizes distribution channels rather than a consensus-driven performance model. Methods like in-store promotions and direct mail advertising represent traditional forms of marketing that do not involve affiliate relationships or commission-based performance.