Affiliate Marketing is a method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber and customer provided through his efforts.The affiliate will proceed to advertise the product in a number of ways, mostly online, by writing articles about the product, posting a classified ad, or pay to advertise the product.
In electronic commerce affiliate marketing means of achieving greater market penetration through websites who target specific groups of internet users.It is just promoting others people product and and earning a commision in return.
This way both the advertiser and the publisher is benefited. Advertisers get more sales of their product when many publishers (or affiliates) promote their product and Affiliates in turn generate revenue by promoting the product. Moreover Advertiser pays only when a sale is made so there is no risk of getting non converting visits like in some PPC (Pay Per Click) campaigns.
There are two ways to approach affiliate marketing .One can offer an affiliate program to others or can sign up to be another business's affiliate. As the business driving an affiliate program, you'll pay your affiliates a commission fee for every lead or sale they drive to your website.