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Imagine having hundreds of websites, bloggers and comparison sites recommending your products, and only paying them when they actually bring you a sale.
That is the idea behind an affiliate programme.
It is one of the most cost-effective ways for a webshop or online service to grow, because you pay for results instead of clicks or impressions.
In this guide we explain how affiliate marketing works, what it costs, and how to start your own programme step by step.
What is an affiliate programme?
An affiliate programme is an agreement where other websites, called affiliates or publishers, promote your products.
Each affiliate gets a unique tracking link.
When a visitor clicks that link and buys something, the sale is registered and the affiliate earns a commission.
You, the advertiser or merchant, only pay when the agreed action happens.
The action is usually a sale, but it can also be a lead, such as a quote request, a newsletter sign-up or a booked meeting.
This makes affiliate marketing interesting for webshops, travel companies, insurance, software, education and many other industries.
Why affiliate marketing works so well
- You pay for results.
There is no cost for clicks that do not convert, so the risk is low. - You reach new audiences.
Affiliates already have readers, followers and email lists that trust them. - It builds visibility on Google.
Reviews, guides and comparison articles about your products help people find you when they search. - It scales.
Once the programme runs, more affiliates can join without much extra work for you. - It works across countries.
With the right network, your products can be promoted by publishers all over Europe and beyond.
The main players
An affiliate programme usually has four parties.
- The advertiser.
That is you, the brand or shop that sells the product. - The affiliate.
The website, blogger, influencer, comparison site or newsletter that promotes the product. - The network or platform.
The technology that tracks clicks and sales, handles payments and connects you with affiliates. - The customer.
The person who clicks, reads and buys.
Network or your own platform?
The first big decision is how to run the programme.
You can join an affiliate network or use your own software.
Affiliate networks
Networks such as Awin, Partner-ads, Daisycon, TradeTracker, Adtraction and Impact connect advertisers with thousands of publishers.
They handle tracking, reporting, invoicing and payouts to affiliates.
The big advantage is access to an existing pool of active publishers in many countries.
The network usually charges a setup fee, sometimes a monthly fee, and a commission on top of what you pay affiliates.
Prices vary a lot, so always ask for a full offer and compare.
Your own affiliate software
Tools for WooCommerce, Shopify and SaaS products let you run a programme directly from your own website.
This is cheaper per sale, and you have full control.
The downside is that you must find and recruit every affiliate yourself, and you handle payouts and support.
For most new programmes, a network is the faster way to get started, while your own software can work well for niche brands with a strong community.
How much does an affiliate programme cost?
The costs fall into three groups.
- Setup.
Network setup fees, tracking installation and creating banners and product feeds. - Commission to affiliates.
Often between 5% and 15% of the order value for webshops, depending on your margin and industry.
Lead programmes usually pay a fixed amount per lead. - Network fee.
Many networks add a percentage of the commission, or a fixed fee per transaction.
The key is to calculate backwards from your margin.
Ask yourself how much you can afford to pay to win a new customer, including the network fee.
If a customer often buys again, you may be able to pay more for the first order.
Step by step: starting your programme
1. Make sure your website is ready
Affiliates will only promote shops that convert.
Check that your website is fast, works well on mobile and has clear product pages with good images and prices.
Your checkout should be simple and support the payment methods your customers expect.
If your conversion rate is very low, fix that first, because affiliates will leave a programme that does not pay.
2. Decide your commission model
Choose what you pay for and how much.
A simple percentage of the sale is the easiest model for webshops.
You can pay different rates for new and returning customers, or higher rates for top partners.
Decide the cookie period too, which is how long after the click a sale still counts.
Thirty days is common, but it depends on how long your customers think before they buy.
3. Set clear terms
Write simple rules for your affiliates.
Can they bid on your brand name in Google Ads?
Are cashback and voucher sites allowed?
Can they use email marketing or social media ads?
Which claims are not allowed in their content?
Clear terms protect your brand and avoid conflicts later.
4. Install tracking correctly
Tracking is the heart of the programme.
If sales are not registered, affiliates lose trust and stop promoting you.
Most networks have plugins for WooCommerce and apps for Shopify, and many now use server-to-server tracking that is less affected by cookie blockers.
Remember to update your cookie banner and privacy policy so they mention affiliate tracking.
Always test a full order from click to confirmation before you launch.
5. Prepare materials for affiliates
Make it easy for publishers to promote you.
Provide a product feed with names, prices, images, stock and links, so comparison sites can show your products automatically.
Add banners in the most common sizes, such as 300×250, 728×90 and 160×600.
Write a short description of your brand, your best-selling products and your unique selling points.
Share upcoming campaigns and discount codes in advance, so affiliates can plan content.
6. Recruit the right affiliates
When the programme is live, do not just wait for publishers to find you.
Look for websites that already write about your product category, and invite them personally.
Comparison sites, niche blogs, review sites, newsletters and local portals are often the best partners.
A few strong, relevant affiliates are worth more than hundreds of inactive ones.
7. Approve and follow up on sales
Most networks let you approve or reject sales after a period, for example when the return window has passed.
Be fair and quick.
Reject only orders that were really cancelled or returned, and explain why.
Affiliates talk to each other, and a reputation for fair approvals attracts better partners.
8. Communicate and optimise
Send a short newsletter to affiliates every month with news, campaigns and top products.
Look at which partners send the most sales and which content converts best.
Reward your best affiliates with higher commission, exclusive codes or early access to campaigns.
Small adjustments over time are what turn a programme from a few sales a month into a real sales channel.
Common mistakes
- Too low commission.
If your rates are much lower than competitors, good affiliates will choose them instead. - Broken tracking.
A single update to your shop can break tracking without anyone noticing, so check it regularly. - Slow approvals.
Affiliates who wait months for their money lose interest. - No product feed.
Many comparison and content sites work with feeds, so without one you miss a large part of the market. - No follow-up.
A programme that is launched and then forgotten rarely grows. - Unclear rules on vouchers and brand bidding.
This can lead to you paying commission for customers who would have bought anyway.
How to measure success
Look beyond the number of sales.
Follow the total commission and fees compared to the revenue the programme brings.
Check how many of the customers are new, and how many buy again later.
Look at the average order value from affiliate customers compared to other channels.
And keep an eye on the number of active affiliates, because a healthy programme has a steady group of partners that send sales every month.
Is affiliate marketing right for your business?
Affiliate marketing works best for businesses that sell online, have a reasonable margin and products that people search for and compare.
Fashion, home and garden, electronics, baby products, health, travel, insurance and software are typical examples.
It is less suitable if your margin is very small, or if you only sell locally in person.
For many webshops, it becomes one of the most profitable channels because the cost follows the results.
We know affiliate marketing from both sides
At Marketing Group Málaga we run our own comparison and content sites, and we earn commission as affiliates every day.
That means we know exactly what publishers look for in a programme, and what makes them promote one brand instead of another.
We can help you set up tracking, product feeds and banners, write affiliate terms and find the right partners in the markets you sell to.
Want to start an affiliate programme for your brand?
See our affiliate management prices or contact us for a free chat.
