Affiliate marketing pays a partner when a qualifying sale is attributed to their referral. Partners might publish reviews, create product content, operate comparison sites or share offers. Paying after a sale reduces one kind of risk, but it does not make every sale profitable or incremental.
Work backwards to an affordable commission
Start with contribution before marketing. Allow for network or platform fees, any partner-management cost and the contribution you need to retain. Define whether commission is calculated on revenue excluding VAT, delivery and refunds. A headline percentage means little without that basis.
For an illustrative £50 order excluding VAT, suppose contribution before marketing is £18. A 10% commission on that £50 costs £5. If other variable programme costs are £2, you have £11 left towards overhead and profit. Check the same calculation on discounted products and higher-return categories before offering a flat store-wide rate.
Not all referrals add new demand
A detailed product review may introduce someone who had never heard of you. A voucher page found seconds before checkout may claim a customer already buying. Neither should be judged on attributed revenue alone.
Review partner type, new-customer share, average order value, cancellations and the contribution left after commission. Use controlled tests where practical to learn whether a partner adds sales. Attribution reports describe the rule used to assign credit, not a guaranteed causal effect.
Write clear programme rules
- State the commission basis and which products or customers qualify.
- Define the attribution window and how overlapping channels are handled.
- Set rules for brand bidding, voucher use, self-referrals and promotional claims.
- Explain validation, cancellations, returns and payout timing.
- Require clear advertising disclosures and appropriate use of customer data.
Make the rules available before partners invest time. Avoid changing them retrospectively on valid sales.
Implement tracking with care
Use an integration suited to your Shopify or WooCommerce setup, and test the full order journey. Check discounts, VAT, delivery, duplicate events and refunds. Compare tracked orders with the store ledger before paying commissions.
Affiliate tracking may use cookies or similar technologies. Assess consent and privacy requirements for your implementation before launching it. Server-side tracking does not automatically remove those obligations.
Start with a small, relevant group
Recruit publishers whose audience has a clear reason to buy your products. Give them accurate product information, stock updates and usable assets. A smaller group of well-matched partners is easier to evaluate than a large inactive directory.
Review mature order cohorts after returns are known. Expand partners and commission tiers based on retained contribution, not just gross attributed sales. Set aside cash for accrued commission so that payout month does not become a surprise.
All amounts are illustrative. References: ASA guidance on affiliate marketing disclosures and ICO guidance on cookies and similar technologies.
Put it into practice
Bring your store’s numbers to the conversation. We will start there.
Start your 30 free days