Affiliate is used primarily to describe a business relationship between wherein one company owns less than a majority stake in the other company's stock. ..In this case, one company becomes affiliated with another in order to sell its products or services, earning a commission for doing so.
In its simplest form, with affiliate marketing you only pay out when a sale is made, while also offering flexibility to pay publishers for influencing sales. ... This ensures your marketing is cost effective. Low risk. Paying for performance rather than for clicks ensures affiliate markeitng is a low risk form of marketing.