COMMERCE & CUSTOMER ACQUISITION

Affiliate marketing

Also called
Performance-based partner marketing
Reading time
3 minutes

Affiliate marketing rewards a referring partner for an agreed action, such as an eligible sale or lead. Tracking and programme terms determine attribution, qualification and commission.

AFFILIATE MARKETING IN PRACTICE

  1. Agree the offerDefine eligibility, attribution and commission basis.
  2. Track the actionAssociate valid activity with the partner.
  3. Reconcile the outcomeValidate sales, reversals and payouts.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

$1,000 of sales is not $1,000 of profit.

Assume an affiliate earns 10% of eligible product revenue. Ten $100 qualifying orders create $1,000 of eligible revenue and a provisional $100 commission. If two orders are fully refunded and the programme reverses those commissions, eligible revenue becomes $800 and commission $80. These invented terms illustrate reconciliation; the actual programme determines eligibility, timing and reversals.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Affiliate marketing

Are affiliates always paid for sales?

No. Some programmes reward qualified leads or other actions. The agreement defines the payable event.

Does a referral link guarantee attribution?

No. Tracking, attribution windows, consent and other programme conditions affect the result.

Should paid relationships be disclosed?

Applicable disclosure rules depend on context and jurisdiction. U.S. FTC guidance requires appropriate disclosure of material connections.

Source & example notes

FTC: endorsement guidance, including affiliate relationships.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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