The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.
This article includes a general overview of types of affiliates and agreements. Every business situation is unique, so be sure to get help from an attorney in preparing any affiliate agreement. There may be "gotcha" clauses or language that you may not have seen or included. For example, if you are the affiliate, check to see what percentage of ownership, if any, the other company has in your business.
In Canada, the Canadian Radio-Television and Telecommunications Commission (CRTC) has significantly more lenient rules regarding media ownership. As such, most television stations, regardless of market size, are now O&Os of their respective networks, with only a few true affiliates remaining (mainly located in smaller cities). The Canadian Broadcasting Corporation originally relied on a large number of privately owned affiliates to disseminate its radio and television programming. However, since the 1960s, most of the CBC Television affiliates have become network owned-and-operated stations or retransmitters. CBC Radio stations are now entirely O&O.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and (in some sense) display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.