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 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
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 sta ...
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Franchising
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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 pe ...
References
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Understanding affiliate marketing Affiliate marketing