Affiliate marketing pays a commission to someone for each sale they refer, tracked through a unique link.
For a creator it works in both directions. You can earn commission recommending other people's products, or you can pay commission to have others recommend yours. The second turns marketing from a fixed cost into a share of revenue that only occurs when a sale does.
Attribution decides most disputes. A tracking window says how long after a click a sale still counts, and whether the first or last referrer is paid. Agreeing that before launch avoids the arguments that end partnerships.
Disclosure is a legal requirement in most markets, and audiences generally accept affiliate income when it is stated and the recommendation is honest.
In practice
A 30% commission on a €99 product means paying €30 for a sale you would not otherwise have made — cheaper than most advertising, and only payable on success.
Common mistake
Recommending products you have not used. One bad recommendation costs more trust than a year of commissions is worth.
Read more on this
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