Understanding Affiliate Marketing: How Advertisers and Affiliates Work Together
The advertiser, also known as the merchant, operates one or more online stores. The advertiser runs an affiliate program through which it provides affiliates with several tools to promote its products on the site.
The advertiser also establishes a fixed or variable commission for the sale of its products by affiliates. Affiliates use the tools offered by advertisers or created by them to generate sales (e.g. on their websites, in email campaigns, in search listings, through paid advertising, etc.). When a user directed by the affiliate to the advertiser's site performs the action set by the advertiser (purchase of a product), the latter pays the affiliate the commission established in the affiliate program.