When you click an affiliate link and buy something, how does the company know to pay the person who recommended it? This is how affiliate commissions are tracked, calculated, and paid — in plain English.
Step 1: You Share Your Unique Affiliate Link
When you join a program like that is recommeded you get a personal link.
This link has tracking code. When someone clicks it, a small file called a cookie is saved in their browser.
Step 2: The Customer Buys
If they purchase within the cookie window, the system records that you sent them. The cookie window is usually 30, 60, or 90 days. For example, Amazon is 24 hours, is 60 days.
Step 3: You Get Paid Commission
The company validates the sale and adds commission to your affiliate dashboard. Payouts happen weekly or monthly once you reach the minimum threshold, usually $50 or $100.
1. One-Time Commission: You get paid once. Example: Amazon pays 5% when someone buys a £100 product = £5 once.
2. Recurring Commission: You get paid every month the customer stays. This is the best for beginners.
3. Lifetime Commission: Rare, but you earn on all future purchases that customer makes.
You write a review for an email tool that costs $49 per month and pays 40% recurring.
1 customer = $19.60 per month
10 customers = $196 per month
50 customers = $980 per month
You did the work once writing the article. The commissions repeat.
Most affiliate programs pay via:
PayPal
Bank Transfer / Wise
Wire Transfer
Minimum payout is usually $60 for this programe that is recommended to you. Check the program's affiliate terms page.
Do I need to buy the product first? No, but it helps to review honestly.
Does the customer pay more? No. The price is the same. The commission comes from the company's marketing budget.
Is it tracked if they don't buy right away? Yes, that's what the 30-90 day cookie is for.
Disclosure: Some links are affiliate links. I may earn a commission at no extra cost to you.