{"id":4658,"date":"2025-02-17T16:51:04","date_gmt":"2025-02-17T11:21:04","guid":{"rendered":"https:\/\/www.enactsoft.com\/resources\/?post_type=docs&#038;p=4658"},"modified":"2025-02-18T10:48:23","modified_gmt":"2025-02-18T05:18:23","password":"","slug":"money-flow-in-affiliate-marketing","status":"publish","type":"docs","link":"https:\/\/www.enactsoft.com\/resources\/money-flow-in-affiliate-marketing\/","title":{"rendered":"How does money flow in affiliate marketing?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow-1024x538.png\" alt=\"\" class=\"wp-image-4731\" srcset=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow-1024x538.png 1024w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow-300x158.png 300w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow-768x403.png 768w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow-360x189.png 360w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/Moneyflow.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Affiliate marketing has become one of the most popular ways to earn money online, not just for big businesses but for individuals, too. It\u2019s a simple concept: affiliates promote products, merchants get sales, and everyone shares the profits.&nbsp;<\/p>\n\n\n\n<p>But behind the scenes, the flow of money is what keeps this system running smoothly whether you\u2019re an affiliate, a merchant, or just curious, understanding how the money moves can help you make smarter decisions and maximize your success.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s dive in and break it all down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Does Money Flow in Affiliate Marketing?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Affiliates<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"462\" src=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-1024x462.png\" alt=\"Affiliate Marketing\" class=\"wp-image-4692\" srcset=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-1024x462.png 1024w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-300x135.png 300w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-768x347.png 768w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-1536x694.png 1536w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-2048x925.png 2048w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/1-360x163.png 360w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Affiliate promotes merchant&#8217;s products<\/strong>: The affiliate places a unique affiliate link (provided by the merchant or the affiliate network) on their website, blog, or social media platform.<br><\/li>\n\n\n\n<li><strong>Customer clicks the affiliate link<\/strong>: A tracking cookie is dropped on the customer\u2019s device, containing the affiliate\u2019s ID to credit the sale. Cookie durations vary significantly between programs, ranging from 7 days to 90 days or more. Longer cookie durations increase the chance of the sale being credited to the affiliate, even if the purchase isn\u2019t immediate.<br><\/li>\n\n\n\n<li><strong>Customer completes a purchase<\/strong>: If the customer completes the purchase within the cookie duration, the sale is attributed to the affiliate.<br><\/li>\n\n\n\n<li><strong>Merchant validates the sale<\/strong>: After the sale, the merchant verifies the purchase (e.g., ensuring no return or fraud).<br><\/li>\n\n\n\n<li><strong>Commission is sent to the affiliate (directly or via network)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>If using an affiliate network:\n<ul class=\"wp-block-list\">\n<li>The merchant pays the affiliate network.<\/li>\n\n\n\n<li>The network retains its service fee and passes the remaining commission to the affiliate.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>If direct:\n<ul class=\"wp-block-list\">\n<li>The merchant pays the affiliate directly.<br><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Affiliate receives payment<\/strong>: Affiliates typically receive payments after reaching a specified threshold, such as $50 or $100. This ensures small amounts aren\u2019t paid out frequently, which helps merchants or networks manage payment processes efficiently. Payment methods include bank transfer, PayPal, or other options.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Merchants<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-1024x640.png\" alt=\"\" class=\"wp-image-4693\" srcset=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-1024x640.png 1024w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-300x188.png 300w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-768x480.png 768w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-1536x961.png 1536w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-2048x1281.png 2048w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/2-360x225.png 360w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Merchant creates an affiliate program and join the network<\/strong>: The merchant sets up its program independently or via an affiliate network, defining commission rates and terms.<\/li>\n\n\n\n<li><strong>Merchant provides affiliate links\/materials<\/strong>: Merchants create unique links to track performance and sales from affiliates.<\/li>\n\n\n\n<li><strong>Affiliate drives customer traffic<\/strong>: Affiliates direct customers to the merchant\u2019s website using their unique affiliate links.<\/li>\n\n\n\n<li><strong>Customer makes a purchase<\/strong>: Merchant receives the payment directly from the customer for the product\/service.<\/li>\n\n\n\n<li><strong>Merchant tracks and validates sales<\/strong>: The sale is tracked using the affiliate\u2019s ID in the link or cookie, and the merchant verifies the transaction (e.g., checks for cancellations or returns).<\/li>\n\n\n\n<li><strong>Merchant pays the affiliate (or network)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>If using a network:\n<ul class=\"wp-block-list\">\n<li>Merchants transfer the commission to the network, and network take their cut and transfer the rest to the affiliate.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>If direct:\n<ul class=\"wp-block-list\">\n<li>Merchant pays the commission directly to the affiliate.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Merchant retains revenue minus commission<\/strong>: After paying the affiliate, the merchant keeps the remaining revenue from the sale.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Affiliate Networks<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"990\" src=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-1024x990.png\" alt=\"\" class=\"wp-image-4694\" srcset=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-1024x990.png 1024w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-300x290.png 300w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-768x742.png 768w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-1536x1485.png 1536w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3-360x348.png 360w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/3.png 1917w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Merchant joins the affiliate network<\/strong>: The merchant pays the network an upfront fee or ongoing membership fee to join.<\/li>\n\n\n\n<li><strong>Affiliate joins the network<\/strong>: Affiliates sign up for free or a nominal fee and gain access to the merchant\u2019s affiliate program.<\/li>\n\n\n\n<li><strong>Network tracks clicks and conversions<\/strong>: The network uses tracking systems to record affiliate-driven traffic and sales.<\/li>\n\n\n\n<li><strong>Merchant pays network fees<\/strong>: For each sale, the merchant pays the affiliate network:\n<ul class=\"wp-block-list\">\n<li><strong>Affiliate commission<\/strong>: Passed to the affiliate.<\/li>\n\n\n\n<li><strong>Service fees<\/strong>: Retained by the network for facilitating tracking and payouts.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Network pays affiliates<\/strong>: The affiliate network disburses the commissions to the affiliates after deducting any applicable taxes or processing fees.<\/li>\n\n\n\n<li><strong>Network earns service fees<\/strong>: The network keeps its share of the payment as a service fee.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Customers (Earning Cashback via Cashback Site)<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"653\" src=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-1024x653.png\" alt=\"\" class=\"wp-image-4695\" srcset=\"https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-1024x653.png 1024w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-300x191.png 300w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-768x489.png 768w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-1536x979.png 1536w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-2048x1305.png 2048w, https:\/\/www.enactsoft.com\/resources\/wp-content\/uploads\/2025\/02\/4-360x229.png 360w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Customer signs up on a cashback site<\/strong>: The customer creates an account on a cashback website.<br><\/li>\n\n\n\n<li><strong>Customer clicks on the merchant\u2019s link<\/strong>: The cashback site uses its affiliate link to redirect the customer to the merchant\u2019s website.<br><\/li>\n\n\n\n<li><strong>Customer makes a purchase<\/strong>: The merchant receives payment for the purchase directly from the customer.<\/li>\n\n\n\n<li><strong>Merchant pays commission to the cashback site<\/strong>: The merchant sends the commission (via the affiliate network or directly) to the cashback site after verifying the sale.<\/li>\n\n\n\n<li><strong>Cashback site allocates a portion of the commission<\/strong>: A part of the commission is earmarked as cashback for the customer, while the cashback site retains the rest as profit.<\/li>\n\n\n\n<li><strong>Customer receives cashback<\/strong>: After the verification period,\n<ul class=\"wp-block-list\">\n<li>The cashback is credited to the customer\u2019s account.<\/li>\n\n\n\n<li>The customer can withdraw it via available payment options (e.g., bank transfer, PayPal).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cashback site profits<\/strong>: The cashback site keeps the remaining portion of the affiliate commission after paying the customer.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>At its core, <a href=\"https:\/\/www.bigcommerce.com\/articles\/ecommerce\/affiliate-marketing\/\" target=\"_blank\" rel=\"noopener\">affiliate marketing<\/a> is about rewarding results. Affiliates earn for their efforts, merchants pay for performance, and networks ensure everything runs smoothly. Whether you&#8217;re just starting out or looking to refine your <a href=\"https:\/\/www.enactsoft.com\/resources\/affiliate-marketing-strategies-for-ecommerce\/\">strategy<\/a>, understanding the money flow is key to making the most of affiliate marketing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Affiliate marketing has become one of the most popular ways to earn money online, not just for big businesses but for individuals, too. It\u2019s a simple concept: affiliates promote products, merchants get sales, and everyone shares the profits.&nbsp; But behind the scenes, the flow of money is what keeps this system running smoothly whether you\u2019re [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":4731,"comment_status":"open","ping_status":"closed","template":"","meta":{"footnotes":""},"doc_category":[72],"glossaries":[],"doc_tag":[],"class_list":["post-4658","docs","type-docs","status-publish","has-post-thumbnail","hentry","doc_category-affiliate-industry-updates"],"year_month":"2025-02","word_count":810,"total_views":"11","reactions":{"happy":"0","normal":"0","sad":"0"},"author_info":{"author_nicename":"sdjsuhds","author_url":"https:\/\/www.enactsoft.com\/resources\/author\/sdjsuhds\/"},"doc_category_info":[{"term_name":"Industry Updates","term_url":"https:\/\/www.enactsoft.com\/resources\/docs-category\/affiliate-industry-updates\/"}],"doc_tag_info":[],"author_list":[{"ID":"2","user_login":"sdjsuhds","display_name":"sdjsuhds","id":"2"}],"_links":{"self":[{"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/docs\/4658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/comments?post=4658"}],"version-history":[{"count":5,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/docs\/4658\/revisions"}],"predecessor-version":[{"id":4732,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/docs\/4658\/revisions\/4732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/media\/4731"}],"wp:attachment":[{"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/media?parent=4658"}],"wp:term":[{"taxonomy":"doc_category","embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/doc_category?post=4658"},{"taxonomy":"glossaries","embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/glossaries?post=4658"},{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/www.enactsoft.com\/resources\/wp-json\/wp\/v2\/doc_tag?post=4658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}