Affiliate marketing has a reputation problem. A lot of it looks like strangers yelling "link in bio" about products they've never touched. That's not the only way to do it, and it's not the way we're going to do it.
Done right, affiliate marketing is simple. You tell people about something you actually use, and if they buy through your link, the seller pays you a cut. Or you flip it around and let other people sell your product for a cut.
By the end of this, you'll know how affiliate programs work from both sides, what the law generally expects you to disclose, and how to run your own program without treating your partners like disposable ad space.
The short version
- An affiliate is someone who earns a commission for sending buyers to a seller through a tracked link.
- If you earn anything from a recommendation, say so clearly, right next to the recommendation.
- Only recommend things you'd use yourself, and if you run a program, pay affiliates on time and give them good tools.
What an affiliate actually is
An affiliate is a person who promotes someone else's product and gets paid a commission, meaning a share of the sale, when a buyer comes through them.
The seller knows the buyer came from you because of an affiliate link. That's a regular web link with a special code attached that identifies you. When someone clicks it and buys, the seller's system records the sale under your name.
Most programs use a cookie, which is a small file the browser stores, to remember that click for a while. If the buyer comes back later and buys, you may still get credit. How long that window lasts depends on the program. Read their terms.
That's the whole machine. Link, click, purchase, commission. Everything else is details.
Two ways to play: joining programs vs. running your own
Joining someone else's program
This is where most beginners start. A company or creator has an affiliate program, you apply, and if they approve you, you get your own link.
Things to look for before you join:
- What they pay and how. Is it a percentage or a flat amount? Paid monthly? By what method?
- Payout rules. Many programs only pay after you reach a minimum balance, or after the refund window closes.
- What's allowed. Some programs ban certain kinds of ads, coupon sites, or using their brand name in search ads.
- Whether you'd actually recommend the thing. More on that below.
Big retailers, software companies and lots of independent creators run programs. If you use a product and like it, check the bottom of their website for a link that says something like "Affiliates" or "Partners."
Running your own program
If you sell your own product, you can let other people promote it for a cut. This is how a lot of small creators grow beyond their own audience.
To do that, you need a way to give each affiliate a unique link, track which sales came from which link, and figure out what you owe. Many store platforms include affiliate features, and there are standalone tools for it too. You'll also need clear written terms, which we'll get to.
Disclosure: say it plainly, say it up front
Here's the part people skip, and it's the part that matters most.
In the US, the Federal Trade Commission, or FTC, expects you to clearly disclose any material connection you have to a product you recommend. A material connection is anything that might affect how people weigh your opinion: you get a commission, you got the product free, the company is paying you, or it's your friend's business.
The FTC's general expectation is that the disclosure be clear and conspicuous. In plain words, that means easy to notice and easy to understand. Not hidden at the bottom of a page. Not buried in a pile of hashtags. Not in tiny gray text.
If you earn anything from a recommendation, say so right next to the recommendation, in words a normal person understands.
Some simple examples:
- "I earn a commission if you buy through this link."
- "This is an affiliate link. I get paid if you buy."
- "They sent me this for free to review."
Put it near the link or at the start of a video, not only in a separate "disclosures" page nobody visits. Say it out loud in videos and live streams too, since not everyone reads the caption.
This is general information, not legal advice. The FTC publishes guidance for influencers and businesses on endorsements, and it's worth reading straight from the source at ftc.gov. Rules can change, so check there rather than trusting a blog post, including this one.
Only recommend what you'd actually use
This is not a law. It's just the rule that keeps you from becoming the person everybody mutes.
Before you promote anything, ask yourself:
- Have I used it, or do I know it well enough to describe it honestly?
- Would I recommend it if there were no commission?
- Is it a good fit for the people who follow me, or just a good payout?
- Can I say what it's bad at, too?
If the answer to any of those is "not really," pass. There will be other products. There won't be another first impression with your audience.
And when you do recommend something, be specific. "This is the template I use for my newsletter, and here's why" beats "OMG best tool ever" by a mile. Mention the downsides. Honest reviews with a few warts are more believable, and more useful, than gushing.
Running your own program fairly
If other people are promoting your product, they're doing you a favor and taking a risk with their own audience. Treat them that way.
Write clear terms
Before anyone signs up, put the rules in writing. Cover at least:
- What percentage or amount they earn per sale
- When and how you pay, and any minimum before payout
- What happens to commissions when a buyer gets a refund
- What promotion methods are not allowed
- That they must disclose their connection, per the FTC's expectations
Keep it short and readable. If an affiliate has to hire a lawyer to understand your one-page program, you've written it wrong.
Pay on time, every time
Nothing kills an affiliate relationship faster than late or missing payments. Pick a schedule you can actually keep and stick to it. If something goes wrong, tell them before they have to ask.
Give them good materials
Your affiliates aren't mind readers. Make their job easy with:
- A plain description of what the product is and who it's for
- Honest pros and limits, so they don't overpromise
- A few images, like a cover or screenshots, they're allowed to use
- Sample wording they can adapt, including a disclosure line
- A free copy of the product so they can actually try it
That last one matters. If you want honest recommendations, let people see the real thing.
Share the numbers
Give affiliates a way to see their own clicks, sales and commissions. When people can check the numbers themselves, there's less room for suspicion and fewer awkward emails asking "did I sell anything?"
Do this next
Recommend things like your name is on them. Because it is.
Veteran. Gen Xer. Thirty-plus years building things on the web. I write these so you can skip some of the expensive mistakes.