Affiliate
A person or company that earns a commission by referring paying customers to another business, typically through a tracked link.
An affiliate earns a commission each time someone they refer makes a purchase or signs up for a paid plan. The affiliate gets a unique tracking link; when a user clicks it and converts, the affiliate earns a percentage of the sale or a flat fee.
How affiliate tracking works: The tracking link contains a unique identifier (e.g., `?aff_id=12345`). When a user clicks it, a cookie is set in their browser. If they purchase within the cookie window (typically 30–90 days), the affiliate earns the commission.
Commission structures: - Percentage of sale: 20–50% is standard for digital products - Flat fee per signup: Common for SaaS tools (e.g., $5–$20 per free trial signup) - Recurring commission: A percentage of the customer's monthly subscription for as long as they stay — the most valuable structure for affiliates
Affiliate networks: Many programmes run through platforms like Impact, ShareASale, PartnerStack, or CJ Affiliate, which handle tracking, payments, and fraud detection.
For content creators: Review sites, YouTube channels, and newsletters are the most common affiliate channels. A single high-ranking review of a $50/mo SaaS tool earning 30% recurring commission generates $15/mo per customer referred — indefinitely.
Example
You write a review of NordVPN and link to it with your affiliate URL. 50 readers click through and 5 subscribe at $60/yr. At a 40% commission, you earn $120 from that one article — plus recurring commissions each year those subscribers renew.
Related terms
Passive Income
Income that continues to arrive without ongoing active work — generated by assets, products, or systems set up previously.
Digital Product
A product delivered digitally — such as an ebook, template, course, or software download — with zero inventory cost and near-zero cost of distribution.
MRR
Monthly Recurring Revenue — the predictable income a business earns every month from active subscriptions or retainer contracts.