An affiliate program is one of the most powerful ways to market your products online. With well-organized affiliate program, you can gain increased traffic and sales, generate qualified leads, extend your brand awareness, and get better search engine rankings.
The Magento Affiliate extension allows you to organize automated advertising campaigns that will help promote your products or services round the clock. With the Magento Affiliate module, you pay the affiliate based on conversion of sales. If a customer follows an affiliate link to your website and makes a purchase in accordance with the rules of your campaign, the affiliate is paid. You can pay him or her fixed percent rate, tier percent rate, fixed amount or tier amount.
So the charm of Magento Affiliate is that it allows you to build a team of sales reps which use their visitors and opt-in lists to advertise your products and services. You don’t have to pay them anything until they make a profit for you.