Affiliate marketing is a performance-based marketing technique in which businesses reward affiliates for each new customer they refer. Affiliates can be individuals or companies who promote the business’s products or services through their own marketing efforts. If a referred customer takes the desired action — such as making a purchase or signing up for a free trial — the affiliate is typically paid a commission by the business. In addition to being an effective way to generate leads and drive sales, affiliate marketing can also be a cost-effective marketing strategy, as businesses only pay commissions when results are achieved. As such, it is an attractive option for many businesses looking to expand their reach and grow their customer base.