The term affiliate is used to describe the relationship between two entities wherein one owns less than a majority stake in the other's stock. Affiliations can also describe a type of relationship in which at least two different companies are subsidiaries of a larger parent company. Most recently, affiliation has been a popular form of marketing for eCommerce companies.
Corporate structure
A
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
may be referred to as an "affiliate" of another when it is related to it but not strictly controlled by it, as with a
subsidiary
A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a ...
relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with companies that need to avoid restrictive laws (or negative public opinion) on foreign ownership.
Affiliate marketings
The process where an organization will pay commission to an affiliate to promote their products either through a website, blog, email or social media. Affiliate marketing brings the power of network effects to brand outreach, using current customers and ambassadors as a channel for marketing outreach.
See also
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Affiliate marketing
Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of ...
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Associate company
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Franchising
Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its busine ...
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Affiliate Program
References
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Understanding affiliate marketing Affiliate marketing