Affiliate programs are arrangements where an online merchant that’s selling products pays an affiliate website a commission for any sales generated from their referral traffic. The affiliate website places affiliate links pointing to the merchant’s site to track transactions. Each agreement between an affiliate and a merchant features the commission structure and payout information.
There are three main parties involved:
- The merchant. For example, a retailer selling products.
- The affiliate. For example, a product review website linking to products on the retailer’s site.
- The consumer, who visits the affiliate site, clicks the affiliate link to the retailer’s website and purchases the retailer’s product.
There are primarily two types of programs: self-hosted programs, and ones in an affiliate network.
First, self-hosted programs run on the company’s website with affiliate software tools. You join these by searching for “Brand + Affiliate Program,” finding their program page, and filling out a form to apply.
On the other hand, a program can live inside affiliate networks – a collection of merchants offering their links in one secure place. These networks let you join new programs in different verticals, view reporting, see your commissions, and grab your affiliate links to add to your site.
With either approach, there are either automatic approvals or manual approvals. Some programs accept anyone; some automatically add you if you hit specific benchmarks. Many programs require an Affiliate Manager to review your application manually.
