Definition of satellite
A satellite is a tournament that has a paid seat to a larger tournament. A satellite tournament is a good way to get into a tournament that we wouldn't normally be able to afford. For example, you enter a $100 tournament. 1000 players enter. We have a total prize pool of $100,000. The satellite tournament could offer 10 playoff seats to the $10,000 World Series of Poker main event. Not many people can afford to play in a $10,000 tournament. Entering a $100 satellite tournament that offers you the chance to win your seat to a $10,000 tournament is a great opportunity.
Some notes on the satellite tournaments
The beauty of satellite tournaments is that there is often overlay in this type of tournament, meaning that the amount of prize money will be greater than the amount collected with the entries. Also, there are a lot of recreational players who play them. Therefore, the average caliber of players in satellite tournaments is low. If you play a lot of them, you might get good results. And some poker rooms will give you back the entry fee in cash if you already had a seat for that tournament.