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A visitor comes to your site. If the visitor clicks on one of the links you have put up, that visitor goes to the merchant's site. If that visitor buys something on the merchant's site, you get a commission.

In some cases, affiliates are compensated even if the visitor doesn't buy anything, just for having driven traffic to the merchant's site. The affiliate's reward varies from merchant to merchant and program to program, depending on the terms of the merchant's offer.