What is a key characteristic of affiliate marketing?

A key characteristic of affiliate marketing is that compensation is based on performance metrics. In affiliate marketing, businesses reward affiliates for driving traffic or sales through their promotional efforts. This performance-based model ensures that affiliates earn commissions only when they achieve specific results, such as generating leads, clicks, or sales. This aligns the interests of both the business and the affiliate, as affiliates are motivated to promote the products or services effectively to increase their earnings.

In contrast, the other options do not accurately capture the essence of affiliate marketing. For instance, affiliate marketing typically does not involve upfront fees from affiliates; rather, it encourages individuals or companies to join for free, reducing barriers to entry. Additionally, affiliate marketing is not primarily focused on in-store promotions; it often occurs online through websites, blogs, or social media. Lastly, affiliate marketing is accessible to businesses of all sizes, not just large organizations, allowing anyone from small enterprises to larger corporations to utilize this model.