Module 1: Foundations · Lesson 1 of 4

How Affiliate Marketing Works

Merchants, networks, tracking links, cookies and commissions - explained simply.

1 min readUpdated 2026-09-26

Lesson objectives

  • Explain the affiliate model
  • Understand attribution windows and commission types

The basic model

A merchant pays you a commission when someone you refer takes an agreed action - usually a purchase, sometimes a sign-up or trial. Your unique tracking link tells the merchant the customer came from you.

  1. Your content
  2. Tracked link click
  3. Merchant site
  4. Purchase
  5. Commission recorded
How an affiliate sale is tracked

Key terms

  • Network: a platform that manages many merchants' programmes (tracking, payouts).
  • Cookie / attribution window: how long after a click a purchase still counts for you.
  • One-time vs recurring commission: software programmes often pay recurring commissions on subscriptions.
  • EPC (earnings per click): average earnings divided by clicks - useful for comparing programmes.

Action steps

  1. List three products you already use and could recommend honestly

Checklist

  • I understand how tracking works
  • I know each programme's terms

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