Guide
Affiliate marketing basics: how partner programmes work
In affiliate marketing, partners promote your products and only receive a commission when this results in a sale or an enquiry. That makes the channel particularly predictable for many businesses. In this guide to affiliate marketing basics, we explain how it works, which models exist and what you should look out for.
Key points at a glance
- Affiliate marketing is performance-based: you pay for sales, leads or, less commonly, clicks.
- The parties involved are advertisers (providers), publishers (partners) and usually an affiliate network.
- Reliable tracking is the foundation, and today it is increasingly server-side.
- Commission must remain profitable even after returns and fees.
- Affiliate links must be clearly labelled for readers.
Contents
- What is affiliate marketing?
- How does affiliate marketing work?
- Who is involved in affiliate marketing?
- What commission models are there?
- What types of publisher are there?
- How does tracking work today?
- What legal aspects need to be considered?
- Who is affiliate marketing worthwhile for?
- How do you measure the success of your programme?
- How do you get started as an advertiser, step by step?
- How do publishers earn money with affiliate marketing?
- How does affiliate marketing differ from other channels?
- Which trends are changing affiliate marketing?
1. What is affiliate marketing?
Affiliate marketing is a form of online marketing in which a business pays partners for the sales, enquiries or clicks they refer. The partners, also known as affiliates or publishers, promote the offers on their own channels, for example on comparison sites, in blogs, newsletters or on social media.
The big advantage for advertisers: as a rule, they only pay for results. For publishers, affiliate marketing is a way to earn money from content and reach without having products of their own.
2. How does affiliate marketing work?
In affiliate marketing, the publisher places a personal affiliate link that allows the tracking to recognise which partner referred a sale. The process usually consists of 5 steps:
- The provider (advertiser) launches a partner programme with commissions and rules.
- Publishers apply and, once approved, receive individual links and advertising materials.
- A user clicks on the link and is taken to the advertiser’s shop or website.
- If they buy or enquire, the tracking attributes the action to the publisher.
- Once the cancellation or validation period has expired, the commission is confirmed and paid out.
3. Who is involved in affiliate marketing?
Affiliate marketing involves 4 roles: the advertiser, the publisher, the end customer and, in most cases, an affiliate network acting as intermediary.
| Role | Task | Example |
|---|---|---|
| Advertiser | Offers products or services and pays commissions | Online shop, insurer, software provider |
| Publisher | Promotes the offers and receives commissions | Comparison portal, specialist blog, newsletter, creator |
| Network | Provides tracking, billing and a partner directory | Large European and international networks |
| End customer | Buys or enquires via the affiliate link | Visitor to the partner’s website |
Alternatively, larger advertisers run their programme without a network, using their own software. We compare which option suits you better in our post Launching an affiliate programme.
4. What commission models are there?
The most common affiliate commissions are paid per sale (pay per sale) and per enquiry (pay per lead). In total, there are 5 common models. Which one suits you depends on where your sale is completed.
| Model | What is paid | Typical for |
|---|---|---|
| Pay per sale (PPS) | A percentage or fixed amount per sale | Online shops |
| Pay per lead (PPL) | A fixed amount per enquiry or registration | Service providers, finance, insurance, software |
| Pay per click (PPC) | An amount per click | Rare, mainly for reach |
| Hybrid | A combination, e.g. fixed fee plus commission | Strong partners with large reach |
| Lifetime commission | Commission also on repeat purchases or subscriptions | Subscription models and SaaS |
Always calculate commissions based on your margin after returns, payment fees and network costs. Otherwise, a commission that looks attractive as a share of revenue can eat up your profit.
5. What types of publisher are there?
Publishers differ greatly in whether they win new customers or mainly close existing purchase intentions. A good programme therefore relies on a deliberate mix.
- Content sites and blogs: provide in-depth advice and often win new customers
- Comparison portals: reach users shortly before they make a decision
- Voucher and cashback sites: strong at closing, but do not always bring in new customers
- Newsletters and creators: well suited to lifestyle, hobby and niche products
- Specialist portals: ideal for B2B and products that need explaining
6. How does tracking work today?
Modern affiliate tracking increasingly relies on server-side methods, because browsers are restricting third-party cookies more and more. Traditionally, the click was stored via a cookie in the browser. However, Safari, Firefox and many ad blockers limit such cookies: since 2019, Safari has restricted cookies set via JavaScript to a maximum of 7 days, and since 2019 Firefox has blocked third-party tracking cookies by default. Today, advertisers therefore mainly use 3 methods:
- First-party tracking: the click is stored via the advertiser’s own domain.
- Server-to-server tracking: the shop reports sales directly to the network, without a browser cookie.
- Voucher code tracking: sales are attributed via personal codes, for example with creators.
Have the tracking tested before you launch. Missing attributions cost you your partners’ trust, and good publishers quickly switch to programmes that pay reliably.
7. What legal aspects need to be considered?
Affiliate links must be recognisable to readers as advertising, and in the EU consent is generally required for tracking cookies. In Germany, this is mainly governed by Section 5a(4) UWG (labelling, German Unfair Competition Act) and Section 25 TDDDG (consent). This section does not replace legal advice.
- Publishers label affiliate links, for example with “Ad”, “Advertisement” or a clearly visible notice.
- Advertisers specify in their terms of participation which forms of advertising are permitted.
- Bidding on brand terms in Google Ads should be explicitly regulated.
- Tracking cookies and pixels are listed in the cookie banner and in the privacy policy.
8. Who is affiliate marketing worthwhile for?
Affiliate marketing is worthwhile for advertisers with products that can be purchased online, a sufficient margin and an offer that partners are happy to write about.
| Well suited | Less suited |
|---|---|
| Online shops with a clear target group | Products with very low margins |
| Software, subscriptions and digital products | Services that are only concluded offline |
| Financial and insurance products | Offers without a measurable conversion |
| Travel, education, technology | Individual projects that need a great deal of explanation |
9. How do you measure the success of your programme?
Measure the success of an affiliate programme not just by revenue, but above all by additional profit: share of new customers, returns and cost per sale for each partner.
- Share of new customers per publisher
- Cancellation and return rate by partner
- Effective cost per sale including network fees
- Overlaps with other channels such as Google Ads or email
We explain how to combine channels effectively in our guide Digital marketing strategy.
10. How do you get started as an advertiser, step by step?
Launching a partner programme involves 3 phases with 6 steps: preparation, set-up and actively recruiting partners. Experience shows that most of the work lies in recruiting and looking after good publishers.
- Calculate your margin and set the maximum commission
- Choose a network or your own solution
- Set up tracking and check it with test orders
- Provide terms of participation, advertising materials and product data
- Approach suitable publishers proactively instead of just waiting for applications
- Keep partners regularly informed about new products, promotions and reports
An example: an online shop for sports nutrition starts with a network, wins 10 specialist blogs and 2 comparison portals in the first few months and pays a higher commission for new customers than for existing ones. In this way, it specifically rewards the partners who genuinely bring in new customers.
11. How do publishers earn money with affiliate marketing?
Publishers earn money by creating content that helps people make a purchase decision and placing relevant affiliate links within it. Honest reviews, comparisons and how-to guides in a clearly defined niche are the most successful.
The foundation for this is reach, usually via search engines. We explain the most important steps in our SEO basics. To find out how publishers and advertisers appear in AI answers, read our guide Becoming visible in ChatGPT & co.
12. How does affiliate marketing differ from other channels?
Affiliate marketing is the only major online channel in which you pay almost exclusively for results. In return, you hand over some control to your partners.
| Channel | Payment | Control | Speed |
|---|---|---|---|
| Affiliate marketing | Per sale or lead | Medium, via rules and partner selection | Medium term |
| Google Ads | Per click | High, full control | Immediate |
| SEO | Effort for content and technology | Medium, Google decides | Long term |
| Social ads | Per impression or click | High | Immediate |
In practice, the channels complement each other. Many customers first see a partner’s review, then search for the brand on Google and buy via an ad. You should therefore design attribution and commissions so that no channel is paid twice.
13. Which trends are changing affiliate marketing?
The most important changes in affiliate marketing are cookieless tracking, the growing role of creators and the shift of purchase advice to AI assistants.
- Server-side tracking is becoming the standard as browsers restrict cookies further.
- Creators on Instagram, TikTok and YouTube increasingly work on commission rather than for fixed fees.
- AI assistants answer purchase questions directly. Publishers with well-founded reviews and clear facts are cited there as sources more often.
- Advertisers are paying more attention to the added value of each partner, rather than just revenue.
For advertisers, this means investing in clean tracking and in partners who provide genuine advice. For publishers, it pays to prepare content in a way that also gets it cited in AI answers.
If you take these developments into account early, you build a partner programme that will still measure reliably and pay fair commissions in a few years’ time. This builds trust with good publishers and makes your programme attractive to new partners.
Frequently asked questions about affiliate marketing
What is a typical affiliate commission?
That depends heavily on the industry and margin. In fashion and lifestyle, commissions ranging from the mid single digits to the low double digits in percentage terms are common; in electronics they are often lower, and for digital products considerably higher. What matters is that the commission is profitable for you and attractive to good partners.
Do I need an affiliate network?
To get started, usually yes. Networks provide tracking, billing and access to many existing publishers. Running your own programme without a network is mainly worthwhile for established brands that can recruit and manage partners themselves. Compare the networks’ fees, partner selection and support in your target markets beforehand.
How long does it take to build a partner programme?
The technical set-up usually takes a few weeks. It often takes several months before a programme has active, high-revenue partners. Actively approaching suitable publishers speeds up the process considerably. Good advertising materials, attractive launch commissions and a dedicated contact person who answers partners’ questions quickly also help.
What is a cookie duration?
The cookie duration determines how long after the click a purchase is still credited to the partner, for example 30 days. It should match the typical purchase decision. With server-side tracking, the more general term is attribution window. For expensive products with a long decision phase, longer durations are common and more attractive to partners.
Can I use affiliate marketing as a service provider?
Yes, via pay per lead. You then pay for qualified enquiries, registrations or booked appointments. It is important to define precisely in advance what counts as a valid lead, so that there are no disputes. Typical criteria are complete contact details, a genuine enquiry and no duplicate entries within a specified period.
How do I prevent fraud in my partner programme?
Vet new publishers before approving them, clearly define which forms of advertising are permitted and check for suspicious patterns such as unusually high cancellation rates. Networks often provide their own verification tools for this. Also specify whether partners may bid on your brand name or use voucher codes, and consistently block disreputable partners.
Want to build a partner programme?
We advise you on networks, commissions and tracking, recruit suitable publishers and steer your programme towards profit.