Affiliate marketing basics, in plain English
What the words mean, how you get paid, and how to stay honest with your audience. About a 10-minute read.
What affiliate marketing is
A company gives you a special link (your affiliate link). When someone clicks it and buys or signs up, the company pays you a commission. The company runs the program, decides who is approved, tracks the sales and pays you. You share honest recommendations with your audience.
Be realistic: most affiliates earn little or nothing at first. Income depends on your audience, how well a product fits them, and the company's terms, which can change at any time.
Commission types
| Type | What it means | Example wording |
|---|---|---|
| Recurring | You earn again each time the customer pays, for a set time or as long as they stay. | "30% recurring for 12 months" |
| Percent per sale | A share of a one-time purchase. | "20% of each sale" |
| Flat per sale | A set dollar amount when someone buys. | "$50 per paid plan" |
| Flat per sign-up | A set amount when someone creates an account, even a free one. | "$2 per free sign-up" |
| Flat bounty | A set amount for a specific action the company defines. | "$100 per qualified lead" |
| Hybrid | A mix, such as a percent plus a sign-up bonus. | "30% per sale + €0.20 per free sign-up" |
Read the details: "up to" usually means the top tier, which new affiliates may not reach. Recurring commissions usually stop if the customer cancels or gets a refund.
Cookie windows
When someone clicks your link, the company saves a small marker (a cookie) in their browser. The cookie window is how long a purchase still counts for you after that click.
Most programs credit the last affiliate link clicked before the purchase. Cookies can also be lost if the buyer clears their browser, switches devices or uses a privacy blocker, so tracking is never perfect. A longer window helps when people take time to decide. See programs with 90+ day cookies.
Payouts, minimums and holds
- Payout minimum (threshold): how much you must earn before you're paid, for example $50. Smaller earnings roll over to the next payout. See programs with a minimum of $50 or less.
- Holding period: many companies wait 30 to 90+ days before approving a commission, in case the customer asks for a refund or cancels.
- Net 30 / Net 60: payment comes about 30 or 60 days later, often counted from the end of the month the commission was earned or approved. Each program defines it in its terms.
- Payment methods: usually PayPal, bank transfer or Stripe. You'll enter these details in the company's or network's own dashboard, along with tax forms.
- Reversed commissions: refunds, cancellations, fraud checks or rule breaks can remove a commission you saw earlier. That's why "pending" earnings can change.
Networks vs. in-house programs
Some companies run their own program (in-house). Others use an affiliate network such as impact.com, PartnerStack, CJ or Awin. A network gives you one account and dashboard for many brands, but each brand still approves you separately and sets its own terms. Every listing on Green Gator Affiliator shows which route a program uses and links to the official terms.
Getting approved
- Many programs review applications by hand. Approval can take a few days to a few weeks.
- Have a real place you'll share links (a blog, channel, newsletter or social profile) with some content already on it.
- Explain who your audience is and how you'll promote the product honestly.
- Some programs require a minimum audience or traffic. Others welcome beginners. See beginner-friendly programs.
- Declined? Some programs let you reapply later as your audience grows. Track it in My Programs, which reminds you to follow up after 14 days.
Telling your audience (disclosure)
In the United States, the Federal Trade Commission (FTC) expects you to tell people when you earn money from a recommendation. In its own words, the disclosure should be clear and conspicuous, and "the closer it is to your recommendation, the better."
- Put it near the link, before people click. A disclosure buried on an About page, in a footer link or in your terms isn't enough.
- Use plain words. The FTC says "affiliate link" alone may not be understood. Something like this is clearer:
- Short posts: starting with "Ad:" or "#ad" is an example the FTC gives as likely effective.
- Videos: say it in the video itself, ideally near the start, not only in the description. In live streams, repeat it from time to time.
- Podcasts and audio: say it out loud at a pace that's easy to follow.
- Only share honest opinions about products you've actually tried or researched.
Not legal advice. Green Gator Affiliator isn't a law firm. Rules differ by country and platform, and some programs have their own disclosure rules. Read the FTC's guidance (linked below) and ask a lawyer if you're unsure. For wording you can copy for each platform, see How to disclose affiliate links.
Common program rules
- No brand-keyword bidding: many programs ban paid search ads on their brand name.
- No fake coupons or misleading claims.
- No buying through your own link (self-referrals) unless the program allows it.
- Channel limits: some programs don't allow email, coupon sites or certain social platforms.
- Breaking the rules can mean lost commissions or a closed account, so read each program's terms. Our listings link to them.
Taxes
Affiliate commissions are income. In the US, the IRS says income is taxable even if you don't receive a tax form for it. A US company may send you a Form 1099 when it pays you at least a certain amount in a year. For payments made in 2026, that amount is $2,000. You still report income below that amount.
Not tax advice. Green Gator Affiliator isn't an accountant. Tax rules depend on where you live and your situation. Talk to a tax professional, especially before your first payout.
Red flags
- A program that charges you a fee to join.
- Promises of guaranteed or "passive" income.
- No written terms, or terms that hide how and when you're paid.
- Being asked for passwords, or sent to a login page that doesn't match the company's real website.
- Pressure to recruit other affiliates as the main way to earn.
If a listing on Green Gator Affiliator looks wrong or suspicious, open it and tap Report incorrect information.
How to start
- Pick products you already use and would recommend to a friend.
- Check fit: make sure the program allows where you post. Use the filters on Find Programs.
- Read the official terms: commission, cookie window, payout minimum and rules. Each listing links to them and shows when we last checked.
- Apply to two or three programs to start, not twenty.
- Track everything in My Programs: stage, dates, your link, promo codes and notes. Make QR codes for print or video.
- Disclose clearly every time you share a link.
Quick glossary
- Affiliate link
- Your personal tracking link from a program.
- Attribution
- How a company decides which affiliate gets credit for a sale.
- Conversion
- A click that turns into a sale or sign-up.
- Conversion rate
- The share of clicks that become conversions.
- EPC
- Earnings per click: average earnings for every click sent. Networks show this as a rough guide, not a promise.
- Merchant / advertiser
- The company that runs the program and pays commissions.
- Publisher / affiliate / partner
- You: the person promoting the product.
- Promo code
- A discount code tied to you, so sales count even without a click.
- Reversal
- A commission removed after a refund, cancellation or rule break.
- Tier
- A higher commission level unlocked after a number of sales.
Sources
- FTC: The Endorsement Guides, What People Are Asking
- FTC: Disclosures 101 for Social Media Influencers
- IRS: Gig Economy Tax Center
- 1099 reporting threshold changes for 2026 (One Big Beautiful Bill Act)
Last reviewed October 22, 2026. Something unclear or missing? Tell us.