How do affiliate commissions work?
The Basic Process
Affiliate commissions work through a tracking system. You join an affiliate program and get a unique link or code. When a visitor clicks that link, a cookie or tracking parameter is stored, and if they buy within a set window (often 30–90 days), the sale is credited to you.
The advertiser (merchant) confirms the sale, then pays you either a percentage of the sale (like 5–50% for digital products) or a flat fee (like $5–$100 per lead). Networks like Amazon Associates, ShareASale, or CJ Affiliate handle tracking and payment between you and the merchant.
Common Commission Models
Different programs use different models. The most common are pay-per-sale (you get a cut of each purchase), pay-per-lead (you get paid for sign-ups or form fills), and pay-per-click (you get a small amount for each click, rare today).
Some programs use a two-tier structure where you also earn from affiliates you recruit. Always read the program's terms because they define the cookie duration, what counts as a qualifying sale, and when commissions are reversed (e.g., returns).
- Pay-per-sale: percentage or flat fee per purchase
- Pay-per-lead: fixed amount per sign-up or quote request
- Pay-per-click: small payment per click (uncommon)
- Two-tier: earn from sub-affiliates you refer
Common mistakes
- Thinking you get paid for every click—most programs only pay when a sale or lead is completed.
- Assuming the cookie lasts forever; it usually expires after 30–90 days, and the last click often gets credit.
- Forgetting that returns or cancelled orders can reverse your commission.
