Privy Glossary | Affiliate Marketing

Definition

Affiliate Marketing is a performance-based marketing model where partners earn commission for driving traffic or sales.

Detailed Explanation

Affiliates promote products using tracked links. When a customer converts, the affiliate receives a predefined commission. This model is low-risk because payment occurs only after results.

Why It Matters in eCommerce

• Scales customer acquisition efficiently
• Low upfront cost
• Expands reach through creators and publishers

Example

A blogger earns 10% commission for each sale made through their product review link.

Related Terms

Referral Marketing, CAC, Attribution