Affiliate marketing refers to a system in which revenue is shared between an affiliate merchant and the advertiser. The affiliate receives a fee. This fee is decided on the basis of business generated, or the number of persons contacting the advertiser because of the efforts of the affiliate merchant

Affiliate marketing helps in promotion of a product or service rendered by an individual or an entity. The payments made to the affiliate merchant are commonly known as commissions.

Affiliate marketing programs have gained popularity with the increasing use of Internet. The affiliate marketing programs help an advertiser to expand his marketing and sales promotion network at minimal cost. In other words, it is a cost-effective and result-oriented system. It can provide an advertiser a huge team of sales and marketing personnel without actually hiring them.

Some of the affiliate programs are multi-tiered. In such cases, an affiliate can recruit other affiliates also. They are known as sub-affiliates. The affiliate also earns additional commission on the total payments made to a sub-affiliate.

The affiliate programs allow one to earn regular payments by working from home. Many self-employed persons have found it to be a huge source of income. To understand the finer nuances of an affiliate marketing system, one can utilize free tips provided by several websites, magazines and journals. There are several books available on the market, which claim to give certain tips with which you can maximize your earnings as an affiliate.

There are several forums, sites, search engines and networks which provide one access to hundreds or thousands of affiliate marketing programs available through the Internet. One can earn the maximum as an affiliate if he or she runs a good site, though you can do so through e-mails and e-newsletters also. There are several training courses for affiliates as well as advertisers who want to manage their affiliate network efficiently.