The legal definition of business affiliate refers to an entity that has a certain relationship with another entity, typically by controlling, being controlled by, or being under common control with that entity.
This relationship can be based on direct ownership, where one company owns a significant portion of the other, or indirect control, such as a contractual agreement or joint venture.
A good example of business affiliates is Google and YouTube. Google owns YouTube, making it a business affiliate. While both companies operate independently, YouTube benefits from the financial and technological support of its parent company, Google. Both companies share resources and integrate services, like Google Ads running on YouTube videos.
The term affiliate is also used in marketing. Affiliate marketing is a strategy in which an affiliate promotes a product or service offered by a company and is paid for the results of those promotions, typically through a percentage of the sale or a fixed fee for each lead or click.
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