In simple terms, Affiliate Marketing is a pact between an online merchant and an affiliate, whereby the merchant gives commission to the affiliate for generating sales, bringing customers, leads or clicks to the merchant’s site through his efforts.

For example, there are financial institutions, credit card companies, banks which give commission to the affiliates if they send potential customers or visitors to the company’s site. The volume of commission varies along with the type of transactions which takes place. If the customer simply completes an application for credit card or an account, the affiliate get around $5-$15 as commission, and if the customer opens an account or gets the credit card through the efforts of the affiliate then he gets commission around $50. This is just an example; the volume of commission offered varies from company to company.

It must also be remembered that this type of business is totally based on cost per lead or cost per sale. The affiliate will get the commission from the online merchant only after the sale/ transaction has been executed through his efforts. There is a lot of potential to earn commission through this technique and many people are leaving their day jobs and joining as affiliates and are earning handsomely. So, what are you waiting for, learn more about this highly lucrative online business and start earning from home.