Affiliate marketing is the latest catchphrase in the Internet marketing domain. In affiliate marketing there are two main participants, the online advertisers and online publishers. Online advertisers nicknamed as merchants and the online publishers are the sales people or the affiliates. Affiliate marketing shifts the high level risk in marketing the products to the affiliates, as they are working depending on a revenue sharing basis. Performance of the website or the count of the number of clicks or registrations or any other hybrid model will decide the remuneration of the publishers. Since the business world is competitive with strong marketing strategies, affiliate marketing plays a crucial role in promoting business. In affiliate internet marketing web marketers as well as the publishers pay great interest due to this factor. Affiliate marketing will make marketing procedures easy; the marketing methods and the associated programs will be completely automated. This will make the acceptance and the processing of applications and generation of unique sales links easier. In other marketing methods tracking of the performance of the products and the firms is too difficult to analyze. If affiliate marketing takes up the process, it will be a comfortable procedure and reporting of results will be more convenient.