What is Affiliate Marketing and How Does It Work? Affiliate marketing is one of the most popular ways to earn passive income online. It is a performance-based marketing strategy where individuals (affiliates) earn a commission by promoting products or services of a company. Let us break it down step by step to understand how it works and why it is so effective. How Affiliate Marketing Works 1. Parties Involved in Affiliate Marketing: - Merchant (Advertiser/Brand): The company or individual selling a product or service. For example, Amazon, Shopify, or a small business offering online courses. - Affiliate (Publisher/Marketer): The person or entity promoting the merchant’s product or service in exchange for a commission. - Customer: The end user who purchases the product or service through the affiliate’s link. - Affiliate Network (Optional): A platform that connects merchants and affiliates, providing tools like tracking links, reporting, and payment processing. Examples in...