affiliate marketing?

Hi All,
can anybody guide me how affiliate marketing works? If suppose I put some affiliate links on my website, how would I know if a person has clicked my referral links. Is there some way to know this? Can a company cheat with its affiliate marketing program by not giving payment? How will I keep a track on the no. of visitors following my referral links? I hope you getting my point.

See original post by alizayhoney