How Affiliate Programs Work -

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In general, most affiliate programs work in a similar way, however, each affiliate program will vary when it comes down to the details.

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As we said above, affiliate programs are an agreement between a retailer and a seller, detailing the portion of a purchase a retailer will give a seller for facilitating a sale of their products. That’s the general structure that almost all affiliate programs will follow. What varies, is the portion of the purchase, or the commission, that retailers are willing to offer sellers.

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The cut of the sale retailers offer sellers varies hugely across every industry; every brand is different. There’s almost no standard rate, and even sometimes the rate can vary between different products within the same affiliate program. It’s up to retailers to set their rates for their affiliate program, and it’s up to sellers to understand the rate before they start working with any affiliate programs.

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Another major aspect of affiliate programs that varies is who can actually access various affiliate programs.

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Some brands make their affiliate programs accessible to anyone by making it easy to sign up for and they require no prerequisites for sellers interested in joining their affiliate program. Other brands, however, only work with certain kinds of sellers (like established influencers) so their programs can only be signed up for through affiliate networks, which are professional affiliate program management organizations. To become a part of these affiliate networks, sellers often have to meet certain requirements such as having an established social following and a track record of successful affiliate partnerships.

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Even more exclusive still, some brands don’t make their affiliate programs accessible to the public at large at all, and handpick the sellers they wish to be a part of their affiliate program.

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How affiliate programs run is entirely dependant on the brand, whom they want to work with and how they want their affiliate program to be managed.

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One more important aspect of affiliate programs to note is “cookies.” When consumers click on a seller’s affiliate link, they might just be checking out the product page for further information and they may not be ready to make a purchase just yet. A few days, weeks or months later they may be ready to make the purchase, so they go ahead and buy the product. It’s likely that when the consumer goes back the second time to make the purchase, they don’t use the seller’s affiliate link this time, which can be disappointing for the seller because even though they helped to facilitate the sale, they won’t receive commission because the consumer didn’t click through to the retailer’s product page via their affiliate link the second time.

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Most affiliate programs use cookies to prevent the seller from missing out on sales like this. It’s likely that not all consumers are ready to make a purchase immediately, so to give credit and commissions to the seller who introduced the consumer to the product or the brand, many retailers allow there to be a window of time in which the seller will still receive commission from the sale if consumers come back to the site within a certain period of time. For many affiliate programs, this window of time is only days long but for some, it can be weeks or even months.

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This means that if a consumer clicks through an affiliate link from a seller one day and decides not to make a purchase, but returns to the retailer’s site a few days or weeks later to follow through with the purchase, the seller will still earn a cut of the sale from the retailer for facilitating that purchase.

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The length of cookies that retailers allow varies vastly from brand to brand, and just like there’s no industry standard for affiliate program rates, there’s no industry standard for affiliate program cookies either. Some retailers only offer a 7-day cookie window, others offer 30 days and some even offer 60 days.

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The greater the cookie window, however, the better as it means there’s a larger window of time for sellers to earn money from consumers returning to a nbsp;retailer’s site. So when signing up to affiliate programs, make sure to pay attention to the length of cookies each program offers as well as the commission rates because both will influence the amount of income you earn.

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How Affiliate Programs Work

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