affiliate marketing

Internet marketing model where a company places advertising banners on the Web sites of other companies, known as affiliates that may attract its target audience; Amazon.com is one of its most well-known adherents. The affiliates are rewarded for displaying the banner. This reward may be linked to the number of users clicking on the banner, the number of leads produced, or to actual sales made, in the form of a paid commission. Using affiliate marketing a company can build an extensive advertising network in prime positions with no upfront costs, while the affiliate gains revenue for giving over a portion of unused space on its site to the advertising banner.

For example, an e-tailer sets up a Web site selling Persian rugs. The e-tailer contacts other sites, for example an interior design portal or a home furnishings online store, where prospective rug purchasers are likely to visit, and persuades the company to carry an ad banner on its site.