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Affiliate marketing is also the name of the industry where a number of different types of companies and individuals are performing this form of internet marketing, including affiliate networks, affiliate management companies and in-house affiliate managers, specialized 3rd party vendors, and various types of affiliates/publishers who promote the products and services of their partners.
Those methods include organic search engine optimization, paid search engine marketing,email marketing and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques like publishing reviews of products or services offered by a partner.
Affiliate marketing is using one site to drive traffic to another is a form of online marketing, which is frequently overlooked by advertisers. While search engines, e-mail and RSS capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailer's marketing strategies

Types of Affiliate Websites:
Affiliate sites are often categorized by merchants (advertisers) and affiliate networks. There are no industry-wide accepted standards for the categorization. The following list is very generic but commonly understood and used by affiliate marketers.

-Search affiliates that utilize pay per click

-search engines to promote the advertisers offers.

-Comparison shopping sites and directories

-Loyalty sites, typically characterized by providing a reward system for purchases via points back, cash back or charitable donations

-Coupon and rebate sites that focus on sales promotions

-Content and niche sites, including product review sites

-Personal websites (these type of sites were the reason for the birth of affiliate marketing, but are today almost reduced to complete irrelevance compared to the other types of affiliate sites)

-Blogs and RSS feeds

-Email list affiliates (owners of large opt-in email list(s))

-Registration path or Co-Registration affiliates who include offers from other companies during a registration process on their own website.

In other words, You get paid to market someone else products and services.....