Affiliate marketing is a popular business model that allows individuals and businesses to earn commissions by promoting products or services from other companies. It is a performance-based marketing strategy, which means that affiliates only get paid when they successfully refer customers to the merchants' websites or products.

Here's how affiliate marketing works:

1. The merchant or advertiser creates an affiliate program that pays a commission to affiliates who successfully refer new customers to their website or products.

2. Affiliates sign up for the program and receive a unique affiliate link or code that they can use to promote the merchant's products.

3. Affiliates promote the products to their audience through various channels, such as social media, blogs, websites, email marketing, and other marketing methods.

4. When a customer clicks on the affiliate link and makes a purchase, the affiliate earns a commission on the sale.

5. The merchant tracks the sales and commissions generated by each affiliate using special tracking links and software.

6. The merchant pays the affiliates their commissions on a regular basis, usually monthly or quarterly.

Affiliate marketing is a win-win situation for both the merchants and the affiliates. Merchants benefit from increased exposure and sales, while affiliates can earn passive income by promoting products they believe in to their audience. However, success in affiliate marketing requires a strategic approach, consistent effort, and a good understanding of your target audience's needs and interests.