Affiliate marketing works by rewarding affiliate marketers for sending customers to other people’s products on the internet.

It generates revenue for both the affiliate and the product owner from the customer purchasing a product of some kind.

Amazon, for example, has the biggest affiliate program and anyone who joins Amazon’s affiliate program can benefit from selling something on the website. Affiliate marketing is therefore a kind of referral marketing in which the person who refers a customer to a product is rewarded with a percentage of the sale.

Some products, such as physical products, only pay from 3–10% of the value of an item to their affiliates. Other products like digital products which can be automatically downloaded or accessed over the internet pay considerably more. Digital products such as software products or membership products can pay out 40–50% commissions to affiliate marketers.

Affiliate products can generate revenue in many ways. For example, subscription products, such as memberships and software products can pay affiliates again and again from a single sale. Selling products on Amazon can earn affiliates more money if their referral buys other items together with the main item which sent them to the website.

The product owners pay the affiliate marketers after completion of a successful sale. The sale is tracked back to the affiliate’s unique referral link so they get the credit for the sale visit.