affiliate-programs

Vocabulary Word

Definition

‘Affiliate programs’ are arrangements between a company and an affiliate (another person or company). If the affiliate shares a certain link or advertisement about the company’s product, and a person uses that link to buy the product, the affiliate gets paid. It's a way for companies to increase sales.

Examples in Different Contexts

In retail business, 'affiliate programs' allow companies to expand their reach by partnering with third-party sites to promote their products in exchange for a commission on sales. A retail executive might say, 'Our affiliate program has helped us tap into new customer segments and increase online sales.'

Practice Scenarios

Tech

Scenario:

We need to increase our customer base, and referrals seem like an untapped resource.

Response:

Why don’t we start an affiliate program? It could encourage more referrals from our existing users.

Startups

Scenario:

We need to maximize our reach while still managing our tight budget.

Response:

Considering our budget constraints, an affiliate program might be a cost-effective method to attract new users.