Affiliate marketing

What affiliate marketing is

Affiliate marketing is advertising paid only on success. A partner, often called publisher or affiliate, refers to the shop and receives a commission when a purchase results from the referral. Technically the attribution runs through a link with an identifier, usually combined with a cookie recording which partner brought the visitor.

The advantage lies in the risk. Only success is paid for, which makes the model attractive for shops with tight cash. The disadvantage lies in control. The shop does not decide where the ad appears and often does not know in what context its offer is recommended.

Which payment models are common

Most widespread is payment per sale, a fixed amount or a percentage of the basket. Second comes payment per lead, which applies to sign ups or enquiries rather than purchases. Third is payment per click, which sits closest to ordinary advertising and shifts the risk back to the shop. Fourth are tiered models where the rate rises with volume.

The commission level follows from the contribution margin. If it is 24 euros per order, the commission must not come near it, otherwise the margin disappears. Common rates therefore sit well below, between two and ten percent of revenue depending on the industry.

How partners are chosen

• Thematic fit: a comparison site in a related field brings more than a page with arbitrary content.
• Transparency: can it be traced where the recommendation sits, and is it recognisable as advertising.
• Returns: is there a rule for returns and cancellations. Without one, commission is paid on revenue that never arises.
• Guidelines: is the page free of impermissible practices. The shop shares liability when deception is systematic.

Where the risks sit

The first point is attribution. A partner can claim orders that would have arrived without them, for instance by bidding specifically on your brand name. The rule of excluding your own brand name from commissioning guards against that.

The second point is returns. If commission is paid at order and the goods go back afterwards, the shop pays for revenue that does not exist. A payout period extending beyond the withdrawal window solves that.

The third point is the advertising surface: inserting a redirect to a foreign site right before the purchase contradicts the terms of most networks. The fourth point is voucher abuse. Anyone distributing vouchers through affiliate links that were never agreed pushes aside commissions intended for genuine recommendations.

How success is judged

Three values are telling. Revenue per partner shows who carries. The share of orders linked to a partner shows the dependence. And the contribution margin after commission shows whether a partner really brings money or merely moves revenue. The last value is decisive and is forgotten most often.

Frequent questions

• Own programme or a network? Networks bring reach and administration, an own programme more control.
• How long should attribution apply? 30 days are common, shorter periods are more precise.
• Does a programme need labelling? Yes, recommendations have to be recognisable as advertising.