Affiliate

What is an Affiliate?

Affiliate – is a business term, is an “official connection” of one business entity to another. Official connection implies a contract or agreement of some kind and an announcement to the public of the connection between the two businesses.

The term has two more specific uses in business contexts:

Incorporate law and taxes, an affiliate is a company that is related to another company, usually by being in the position of a member or a subordinate role, a subsidiary.

An associate like a subsidiary, but the  associate  is “less than 50% owned by the parent company.” Two companies may be affiliated if one company has control over the other or if both are controlled by a third company.

One corporation can be affiliated with another corporation by shareholdings, by holding a minority interest (that less-than-50% mentioned above), or one corporation might be a subsidiary of another.

Affiliate marketing is the process of earning income every time you promote someone else products or services. If you generate a sale for the company, you get paid. If you don’t generate a sale, you do not get paid.

In online retailing, affiliation is common in marketing and selling wherein one company may associate with another to sell products or services. The seller has a website on which associates may sell products. The seller has control over the site and pays a commission to associate. This relationship is sometimes called “affiliate marketing.”

  • Amazon’s affiliates are called “Amazon Associates.” The associates sell on Amazon’s website, and Amazon takes a percentage of the sale price for its fee.
  • In broadcasting, local TV stations are associate with a national network. These local stations are locally owned, but they use network content and advertising.

Conclusion

Is your company in need of help? MV3 Marketing Agency has numerous Marketing experts ready to assist you. Contact MV3 Marketing to jump-start your business.

 

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