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Exercises · Q7

Q.Explain affiliate marketing with a suitable example.

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Affiliate marketing is a performance-based method of digital marketing in which a business rewards outside partners — called affiliates — for bringing it customers.

How it works:

  1. The affiliate promotes the business's product using a special tracking link unique to that affiliate.
  2. A visitor clicks the link and makes a purchase (or completes another agreed action, such as signing up).
  3. The tracking link records that the sale came from that affiliate, and the affiliate earns an agreed commission.

Example: Suppose a person who runs a popular blog about photography writes an honest review of a camera bag and includes a tracking link to the seller. A reader clicks that link and buys the bag for, say, Rs 2,000. If the agreed commission is 10%, the affiliate earns Rs 200, and the seller happily pays it because it came from a real sale that might not have happened otherwise. …

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