Developing a strong affiliate network is a great way to increase traffic (and conversions) on your site. Your affiliates can refer customers to your site and you only pay commissions if the customer actually buys from you. The long-and-short of it is: other well-respected sites link to yours. If their customers click the link to your site and buy something from your business, you pay the referring site a commission. Because commissions are only paid for sales, the cost can be reasonable and the exposure and increased traffic for your site can be invaluable.