Parent companies may refer to their level of ownership with the terms affiliate, associate, and subsidiary. The seller maintains the website, sells the products, and in return pays commission to the affiliates. “ Affiliate marketing” is when a seller has a website that sells the affiliate's products.
Two corporations may be affiliated with one another when a minority interest shareholding (this must fall under the 50 percent previously mentioned) is in place or when the corporations are subsidiaries of each other.Īffiliation for online retailers is a norm as it allows companies to affiliate in marketing and selling their products or services. In this case, one company will have control, or a third party may take control. Two companies may fall under one umbrella if an affiliate is less than 50 percent owned by the parent company.
Affiliates are organizations, individual persons, or business concerns that are controlled by a third party or each other. The legal definition of 'affiliate' applies to business and retail relationships.
