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Affiliate marketing is a performance-based arrangement in which a business pays an affiliate for referring a customer who completes a qualifying purchase or other agreed action.
The affiliate, also called a publisher, might operate a review website, newsletter, social account, or shopping app. A tracked link or another supported referral method connects the recommendation to the customer action. The program defines eligible referrals, commission rates, attribution rules, and payment conditions.
Affiliate marketing example
A review website compares headphones and includes a retailer's affiliate link. Near the recommendation, it explains that it may earn commission if a reader buys through the link. The reader follows the link and completes checkout on the retailer's website.
The retailer or its tracking provider records the purchase and matches it to the referral. The website earns commission after the program approves the purchase. The retailer fulfills the order.
Who is involved in affiliate marketing?
The merchant sells, the affiliate refers, and the customer chooses. An affiliate network can connect the parties and administer tracking and commission, but a program can also operate directly.
| Participant | Role | In the headphone example |
|---|---|---|
| Merchant or advertiser | Sells the product or service and defines the program's payable action. | The retailer handles checkout, transaction terms, and fulfillment. |
| Affiliate or publisher | Recommends the option and sends a supported referral. | The review website owns the comparison and commercial disclosure. |
| Network or platform | Can connect programs with publishers and support tracking, reports, and commission administration. | A provider may match the retailer's purchase report to the website's referral. |
| Customer | Decides whether to follow the recommendation and complete the action. | The reader buys from the retailer, not from the review website. |
How does affiliate marketing work?
Join an eligible program
The affiliate confirms approval, commission terms, and permitted content and traffic. Access to a network does not automatically grant access to every merchant program.
Recommend and disclose
The affiliate gives a useful, accurate recommendation and explains its commission relationship near the referral.
Track the referral and outcome
The customer follows the approved link or action. The merchant or provider reports a sale, booking, signup, or other required event so the program can match it to the referral.
Validate commission and arrange payment
The program checks that the purchase qualifies and approves the commission for payment. A return or cancellation can reduce the amount, which is why a new purchase may first appear as pending.
Affiliate marketing vs affiliate networks and APIs
Affiliate marketing is the commercial model. A network is an intermediary, while an API is a software interface. An affiliate can use the model without integrating an API.
| Term | What it describes | Typical use |
|---|---|---|
| Affiliate marketing | A business pays for qualifying referrals. | A review website earns commission from an eligible purchase. |
| Affiliate network | A platform connects advertisers with publishers and supports program operations. | Find merchant programs and read referral or commission reports; see affiliate network. |
| Affiliate API | An interface exposes supported program data or actions to software. | Retrieve product information, create links, or synchronize reports; see affiliate API. |
Can AI apps use affiliate marketing?
Yes, if the merchant program permits the app's traffic and use of its data. An AI shopping app can recommend a suitable item, explain its commission relationship, and send the user to merchant checkout. AI affiliate monetization covers the app-specific workflow.
FTC endorsement guidance explains US disclosure obligations. Other markets and programs have their own requirements.
How AON relates to affiliate marketing
An AI app can act as an affiliate publisher. With AON, it finds offers relevant to a user’s request, recommends an option, and sends the user to the merchant through a tracked referral.
If the referral leads to a purchase or other action that meets the offer’s commission rules, the app can earn revenue. The merchant sells the product; the app earns from helping the customer find it.
Read AON Core ConceptsCommon questions about Affiliate marketing
Is affiliate marketing paid per click or per sale?
The program defines the payable event. Affiliate arrangements often compensate a qualifying sale or action; a click should not be treated as payable unless the applicable terms explicitly use that model.
Can an AI assistant use affiliate marketing?
Yes, when the program permits that use and the integration preserves its required tracking, disclosure, and content rules. AI generation does not remove those obligations.
In affiliate marketing, is an affiliate network the same as the merchant?
No. A network can connect publishers and supply or support tracking and reporting. The merchant supplies the product or service and remains responsible for the transaction and fulfillment.
Sources
- CJ: how affiliate marketing worksIndustry source
- FTC endorsement guidanceOfficial documentation
- FTC Disclosures 101Official documentation
- AON Core ConceptsAON documentation
- AON Partner integrationAON documentation
- AON Partner postbacksAON documentation