Affiliate marketing is a performance-based strategy where affiliates earn a commission for promoting a business’s products or services to their audience. When a potential customer clicks the affiliate’s unique tracking link and completes a desired action, such as a purchase or signup, the affiliate receives a commission from the merchant. This revenue-sharing model benefits businesses by expanding their reach and driving sales, and affiliates by allowing them to earn income by recommending products they trust without having to create their own.

The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts had generated sales more than $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to the Prodigy Network.