The Tool Desk
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What an affiliate program does
An affiliate program is a performance-based partnership: publishers or creators promote a merchant’s products or services using tracked links, and the merchant pays commission for qualifying results. Shopify’s merchant guide outlines the main setup decisions, including commissions, tracking, recruiting, and program growth.
Before choosing software or inviting partners, decide what a successful referral means for your business. A program should reward results you can measure and afford while giving partners rules they can follow.
How to start an affiliate marketing program
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Define the offer and partner audience
Choose the products or services affiliates may promote and identify the customers you want to reach. Then consider which publishers or creators can credibly reach those customers. Relevance, content quality, credibility, and the partner’s ability to follow your rules are useful selection criteria; no single recruitment channel or partner count suits every merchant.
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Set the qualifying action and commission rules
Decide which events earn commission—for example, a completed sale—and state how you handle cancellations and returns. Set a commission that fits your margins and the value of the qualifying result. The available guidance does not establish a universal commission rate or attribution window, so calculate terms for your own economics rather than copying a supposed standard.
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Choose a tracking and operating method
You need a reliable way to attribute referred sales and review partner performance. A feature built into your commerce platform, dedicated program software, or a manual process may fit depending on your store and operational needs. Compare options by how they connect to your store and payment flow, what reporting you need, and how much work you can support. The Shopify guide covers tracking as a launch decision but does not establish one technical setup as best for all merchants.
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Write clear program terms and partner instructions
Document which products partners may promote, what claims they may make, which promotion methods are allowed, how qualifying sales and reversals are treated, and how partners should disclose their relationship to you. Provide approved creative assets, a contact route for questions, and a process for addressing questionable promotions. Specific, usable instructions make the rules easier to follow and enforce.
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Recruit and onboard relevant partners
Invite publishers or creators whose audience and content fit the offer. Give accepted partners the terms, tracking instructions, approved assets, claim boundaries, and disclosure guidance before they publish. Make sure they know whom to contact when a product claim or promotion method is unclear.
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Monitor activity and improve the program
Review attributed results and partner content periodically. Correct inaccurate or unsupported claims, address promotions that violate your rules, and use observed performance to refine the offer, partner mix, and operating process. The Federal Trade Commission recommends that advertisers instruct partners, periodically search for their statements, and take appropriate action when practices are questionable.
How to set commissions and track affiliate sales
Commission design and tracking are linked: the event you pay for must be one your tracking process can identify and your business can afford. Work through these decisions before launching:
- Economics: Check product or service margins and determine what commission remains sustainable after cancellations and returns.
- Qualifying event: State exactly what earns commission and when a referral counts as complete.
- Attribution: Choose a tracking approach that fits your commerce and payment systems and produces the reporting you need.
- Operations: Account for the time required to review results, answer partner questions, and resolve disputed or reversed referrals.
Do not assume a particular rate, attribution window, or software platform is standard. The merchant guidance describes the decisions to make, but does not establish universal values or a single preferred tool.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What affiliates should disclose—and what merchants must oversee
In the United States, FTC guidance says an affiliate should clearly and conspicuously disclose a financial relationship with the retailer so readers can weigh the recommendation accordingly. Place the disclosure close to the endorsement. The FTC cautions that “affiliate link” alone may not tell readers that the publisher earns money; “paid link” next to a link can communicate that connection. The FTC’s Endorsement Guides Q&A says, “The closer the disclosure is to your recommendation, the better.” Laws outside the United States may also apply.
For social posts and video, the FTC’s Disclosures 101 for Social Media Influencers says the disclosure should accompany the endorsement and be easy to notice and understand. A video disclosure belongs in the video itself, not only in its description.
Merchants remain responsible for oversight when they use outside partners. The FTC’s Endorsement Guides Q&A states, “Delegating part of your promotional program to an outside company doesn’t relieve you of responsibility under the FTC Act.” Give partners guidance on permitted product claims and disclosure, check their public promotions periodically, and act when you find questionable practices.
Amazon Associates has separate wording requirements
Amazon Associates participants have an additional program-specific requirement: Amazon says they must include a compliant disclosure with links and identify themselves on their site using the statement required by the Operating Agreement. That wording applies to Amazon Associates; do not treat it as a universal disclosure rule for other affiliate programs.
Quick Recap
Launch checklist
- Products or services and target customers are defined.
- Partner fit and acceptance criteria are clear.
- Qualifying actions, cancellations, returns, and commission terms are documented.
- Tracking and reporting work with the store and payment process.
- Terms explain permitted claims and promotion methods.
- Partners receive disclosure instructions, assets, and a contact route.
- A schedule and process exist for reviewing results and partner content.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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