In e-commerce, what model involves websites paying commissions to other sites to drive business to their own?

The affiliate model is distinguished by its structure where websites earn commissions by promoting and directing traffic to another company’s site. In this arrangement, an affiliate website provides links to the merchant's products or services, and when visitors click on those links and make a purchase, the affiliate earns a commission from the sale. This model is particularly beneficial in e-commerce because it allows merchants to expand their reach through partnerships without directly investing in advertising, creating a win-win situation for both parties.

In contrast, the advertising model focuses on generating revenue primarily through ad placements, where companies pay to display ads on a website. The subscription model involves consumers paying a recurring fee for accessing services or products, which does not involve commissions from referrals. The transaction model relies on generating revenue from sales made directly through the website itself, rather than through affiliate commissions. Understanding these distinctions helps clarify why the affiliate model uniquely fits the scenario presented in the question.