In business, an affiliate is an entity that owns less than a majority stake in another'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 or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...
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 (law), company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidia ...
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 Affiliate (commerce), affiliates receive a wiktionary:commission, commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to Outsourcing, ...
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Associate company
An associate company (or associate) in accounting and business valuation is a company in which another company owns a significant portion of voting shares, usually 20–50%. In this case, an owner does not consolidate the associate's financial st ...
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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 busines ...
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Affiliate Program
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 per ...
References
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Affiliate marketing