Keywords · Channel · Acquisition · Updated 2026-07-21

What is Affiliate Marketing?

Short answer: A performance-based channel where partners earn a commission for referring customers who convert, tracked via unique links.

Definition

A performance-based channel where partners earn a commission for referring customers who convert, tracked via unique links.

Why it matters for growth

Affiliate marketing shifts acquisition risk onto the partner, since spend only happens after a conversion, making it attractive for cash-tight founders.

Example

A software review site earns 20% of first-year revenue for every customer it refers through a tracked affiliate link.

FAQ

What is Affiliate Marketing?
A performance-based channel where partners earn a commission for referring customers who convert, tracked via unique links.
Why does Affiliate Marketing matter for growth?
Affiliate marketing shifts acquisition risk onto the partner, since spend only happens after a conversion, making it attractive for cash-tight founders.
What is an example of Affiliate Marketing?
A software review site earns 20% of first-year revenue for every customer it refers through a tracked affiliate link.
What is Affiliate Marketing? Definition and growth use · Cofounderbase