Affiliate Marketing
Build profitable partnerships through performance-based marketing.
1. Affiliate Program Types
| Type | How It Works | Best For |
|---|---|---|
| In-house | Run your own program | Control, high volume |
| Network-based | Use affiliate networks | Reach, management |
| Hybrid | Both approaches | Flexibility |
2. Commission Structures
| Model | Description | Typical Rate |
|---|---|---|
| CPA (Cost Per Action) | Fixed fee per conversion | $5-$200+ |
| Revenue share | % of sale | 5-50% |
| Recurring | % of ongoing payments | 10-30% |
| CPL (Cost Per Lead) | Fee per qualified lead | $1-$50 |
| Tiered | Higher rates for more sales | Varies |
| Hybrid | Base + performance | Varies |
Commission Rate Benchmarks
| Industry | Typical Rate |
|---|---|
| Digital products | 30-50% |
| SaaS | 20-40% recurring |
| E-commerce | 5-15% |
| Finance | $50-$200 CPA |
| Travel | 5-10% |
3. Affiliate Networks
| Network | Best For | Commission Type |
|---|---|---|
| Amazon Associates | Physical products | 1-10% |
| ShareASale | E-commerce, diverse | Varies |
| CJ Affiliate | Enterprise brands | Varies |
| Impact | SaaS, subscription | Varies |
| PartnerStack | B2B SaaS | Recurring |
| Rakuten | Retail, travel | Varies |
4. Affiliate Types
| Type | Description | Best For |
|---|---|---|
| Content creators | Bloggers, YouTubers | Reviews, tutorials |
| Influencers | Social media reach | Awareness, quick sales |
| Coupon/deal sites | Discount focused | Volume, price-sensitive |
| Loyalty/cashback | Rewards users | Retention |
| Email marketers | Newsletter-based | Targeted promotions |
| Comparison sites | Side-by-side reviews | Research phase |
| Sub-affiliates | Recruit other affiliates | Scale |
5. Recruiting Affiliates
Outreach Best Practices
| Element | Approach |
|---|---|
| Research | Understand their audience |
| Personalize | Reference their content |
| Value prop | What's in it for them |
| Easy ask | Simple next step |
| Follow up | 2-3 touches |
Where to Find Affiliates
| Source | How |
|---|---|
| Competitor programs | Reverse engineer |
| Content search | "[your category] + review" |
| Affiliate networks | Marketplace listings |
| Social media | Hashtag research |
| Conferences | Networking events |
6. Program Structure
Essential Elements
| Element | Description |
|---|---|
| Commission rates | Clear, competitive |
| Cookie duration | 30-90 days typical |
| Payment terms | Net 30-60 days |
| Minimum payout | $25-$100 threshold |
| Creative assets | Banners, links, content |
| Tracking | Reliable attribution |
Terms and Conditions
| Area | Cover |
|---|---|
| Prohibited tactics | PPC bidding, spam |
| Brand usage | Trademark guidelines |
| Disclosure | FTC requirements |
| False claims | Prohibited statements |
| Termination | When/how |
7. Affiliate Tracking
Attribution Models
| Model | How It Works |
|---|---|
| Last click | Last affiliate gets credit |
| First click | First affiliate gets credit |
| Linear | Split among all touches |
| Time decay | Recent gets more weight |
Tracking Methods
| Method | How It Works |
|---|---|
| Cookies | Standard browser tracking |
| Coupon codes | Unique codes per affiliate |
| UTM parameters | URL tracking |
| Fingerprinting | Device-based (cookieless) |
8. Performance Metrics
Program Metrics
| Metric | Formula | Healthy |
|---|---|---|
| Active rate | Active affiliates / Total | >10% |
| Revenue per affiliate | Total revenue / Affiliates | Increasing |
| Conversion rate | Conversions / Clicks | >1% |
| EPC (Earnings Per Click) | Earnings / Clicks | $0.20+ |
| Refund rate | Refunds / Sales | <10% |
Affiliate Health
| Metric | Monitor |
|---|---|
| Traffic quality | Bounce rate, geo |
| Conversion rate | Compare to average |
| Refund rate | Fraud indicator |
| Customer LTV | Long-term value |
9. Fraud Prevention
Common Fraud Types
| Type | Sign |
|---|---|
| Cookie stuffing | High impressions, low quality |
| Click fraud | Unusual click patterns |
| Coupon abuse | Last-click stealing |
| Self-referral | Affiliate is customer |
| Fake leads | Low quality, high bounce |
Prevention Tactics
| Tactic | Implementation |
|---|---|
| Vetting | Review before approval |
| Monitoring | Unusual patterns |
| Holdback | Payment delay period |
| Reversal | Refund clawback |
| Terms | Clear prohibited activities |
10. Affiliate Tools
Program Management
| Tool | Best For |
|---|---|
| Impact | Enterprise |
| PartnerStack | SaaS |
| Refersion | Shopify |
| Post Affiliate Pro | Self-hosted |
| Tapfiliate | SMB |
Tracking/Analytics
| Tool | Purpose |
|---|---|
| Affiliatly | Simple tracking |
| Everflow | Performance marketing |
| TUNE | Enterprise tracking |
Remember: The best affiliate programs prioritize quality over quantity. A few high-performing partners beat thousands of inactive ones.