Affiliate marketing is a performance-based marketing strategy where businesses reward affiliates (partners) for driving traffic or sales to their website through the affiliate’s marketing efforts. Affiliates earn commissions or other incentives based on the agreed-upon actions, such as clicks, leads, or sales generated from their referrals. It’s a cost-effective way for companies to expand their reach and sales, as affiliates typically promote products or services through their own channels like websites, blogs, social media, or email lists.