An affiliate program is a structured arrangement where a merchant provides affiliates with unique links or codes to track the traffic or sales they generate. Affiliates earn commissions based on predefined actions, such as sales, clicks, sign-ups, free trials, or demo requests.
Merchants use affiliate programs to extend their marketing reach without upfront advertising costs, paying only for results. Affiliates benefit by earning revenue from promoting products or services they are passionate about. Successful programs include clear terms and conditions, competitive commission structures, marketing support, and regular communication.
Modern affiliate programs incorporate tiered commission structures, performance bonuses, exclusive promotions, and comprehensive tracking across multiple touchpoints. SaaS affiliate programs often feature recurring commissions, lifetime value sharing, and integration with customer success metrics to optimize long-term partnerships and align incentives with business objectives.