The Trade Desk EDGE: Marketing Foundations Practice Exam

The primary advantage of an affiliate marketing program is that it allows partners to earn commissions from referrals. This model creates a performance-based environment where affiliates promote a company’s products or services through their own marketing channels. When a referral leads to a sale or a specific action, the affiliate earns a commission. This incentivizes affiliates to actively promote the products, which can lead to increased sales for the company without the company having to invest upfront in advertising.

This performance-driven approach is beneficial for businesses, as they only pay for actual results instead of potential reach or ad placements. It also enables brands to extend their marketing reach through a network of affiliates who may have different audiences that they can tap into effectively.

In contrast, other options do not reflect the essential nature and advantages of affiliate marketing. Limiting business exposure, requiring no financial investment, and focusing solely on in-house sales are not characteristic of this type of marketing model, which inherently involves external partners and commission structures.