An affiliate is an entity with a relationship with a peer or a larger entity.
Broadcast networks
In a radio network or TV network, an affiliate is a radio station or TV station that agrees to carry the broadcasts of, but is not owned by, the network. Usually, the stations are still responsible for the content (i.e. profanity) to some extent.
Electronic commerce
An e-commerce affiliate is a website which links back to an e-commerce site such as Amazon.com. When a reader of the website clicks on a link, they are connected to the e-tailer and if they purchase something the affiliate receives a small payment, usually a percentage of the money the customer spends. Affiliates can also be referred as advertisers. E-commerce affiliate is a multi billion dollar industry and is expected to rival traditional affiliates in the near future.
Corporate structure
A corporation may be referred to as an affiliate of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with multinational companies that need to avoid restrictive laws (or negative public opinon) on foreign ownership.
Affiliate networks
An affiliate network is composed of a group of merchants and a group of affiliates. Merchants join the network and affiliates join the network in order to advertise the merchant products in exchange of a commission from the merchant.
Affiliate networks present some great advantages for the merchant and the affiliate. The merchant gets potential access to a wide networks of affiliates. The affiliate does not necessarily need to make a certain sale amount for one particular merchant but rather for the entire range of merchants before getting paid.
The affiliate also puts more trust in a network rather than a merchants independent affiliate program. The merchants pay the overall commission to the network. The network then distributes the money to each affiliate who made the sale.
List of popular affiliate networks
Use of affiliate links
Sites made up mostly of affiliate links are usually badly regarded as they do not offer quality content.
Affiliate links work effectively when placed in context among quality content. One common use of affiliate links is shopping directories and or price comparison websites. However, these sites should do their best to enhance the web shopping experience.