Affiliate Marketing is a performance-based strategy. You partner with a third-party. Called an "affiliate" or "publisher." This affiliate promotes your products or services. To their own audience. In exchange for a commission. When they drive a specific action. This action is usually a sale. But it can also be a lead. Or a click.
It’s about leveraging others’ audiences. And paying only for results.
How it works:
A business (merchant) creates an affiliate program.
An affiliate joins the program. They get a unique tracking link.
The affiliate promotes the merchant's product. On their blog. Or social media. Or email list.
A customer clicks the link. And buys the product. Or completes a specific action.
The affiliate earns a commission. For that sale or action.
Focus: Driving direct sales or specific actions. Through partners.
Tactics: Product reviews on blogs. Comparison fax lists websites. Coupon sites. Social media influencers. Email newsletters from affiliates.
Goal: Generate sales. Or leads. By paying a commission to the affiliate. Only when a result happens.
Lead Generation vs. Affiliate Marketing: Key Differences
While both strategies bring in potential customers, their core mechanisms differ:
Feature Lead Generation Affiliate Marketing
Control High. You control the message. And the process. Moderate. Affiliates control how they promote.
Cost Structure Upfront marketing costs. Plus sales team costs. Performance-based. You pay only for results (sales, leads, clicks).
Relationship You build direct relationships with prospects. Affiliates build relationships with their audience. You benefit indirectly.
Data Ownership You own the lead data. From the start. Affiliates own their audience data. You might get customer data after a sale.
Sales Cycle Can be short (B2C) or long (B2B). Involves nurturing. Often aims for quicker conversions. But can also generate leads for you to nurture.