Affiliate

An affiliate is a person or business that promotes another company’s products or services in exchange for a commission on resulting sales or leads. Affiliates act as advocates for the brands they partner with, performing marketing and promotion tasks or selling products on behalf of another company.

Some companies build entire affiliate programs that attract dozens of people, such as the Amazon affiliate network. Other brands hand-select a small number of affiliates they consider most beneficial to business growth.

What is an affiliate?

In business terms, “affiliate” refers to the official connection between two business entities. A contract binds the activities of one brand and another person or group. The entities don’t need to be publicly connected, but they must have an agreement giving one company access to the other’s services.

According to the SBA, an individual, business, or entity can be an affiliate of another business if the second business has control over the first based on various factors. Affiliation may be defined by contractual relationships, ownership, or management connections. Parties to a joint venture can also be considered “affiliates” of each other.

There are two primary uses for the term “affiliate” in business:

• In corporate law and taxes, an affiliate is a company related to another business by being in a subordinate role.
• In online retail, an affiliate is a contractor or company required to help another brand sell products and services through either direct selling or marketing.

What is an affiliate program?

An affiliate program or “associate program” is an arrangement in which a company pays another entity (a person or business), a commission to help with the growth of the business. The affiliate agreement may include having another business or individual selling a product on their website, or through their social media channels.

One of the most common forms of affiliate program is “affiliate marketing.” The affiliate sends potential leads to the merchant’s website, where they can purchase a product. Affiliates are typically paid based on the number of leads they deliver or the number of people who convert using a special, trackable link.

Affiliate programs benefit companies in several ways. They provide access to additional marketing and promotional resources, reaching a larger pool of customers. Affiliate marketing can also improve brand reputation by creating associations with well-known individuals.

In the digital marketing landscape, affiliate marketing helps improve SEO rankings. Backlinks from high-authority locations improve the brand’s image in the eyes of search engines. If you are evaluating options, our guide on how to choose the right affiliate program walks through the key criteria.

Can anyone be an affiliate?

Affiliate agreements can often be entered into by all kinds of professionals, including freelancers, sole proprietors, limited companies, and joint ventures. For the affiliate relationship to be successful, however, it must have a complete contract, in which the parties outline:

• The terms of the affiliate agreement
• The definition of “affiliate” in the situation
• The relationship between the two parties
• The rights and duties of the affiliate
• Who pays what, why, and when?
• What licenses may be required for the affiliate or company?
• Who owns the intellectual property created in the partnership?

Related Resources

• Compare tools: Affiliate Marketing Software — browse top platforms in this category.
• Go deeper: The Ultimate List of Affiliate Marketing Statistics 2025 — in-depth guide with practical tactics.