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Affiliate tracking

Affiliate tracking

Noun

[ah-fil-ee-it trak-ing]

Affiliate tracking is technology used to track the traffic, referrals, and/or sales that come through a specific partner. The purpose of affiliate tracking is so that a company knows which affiliates drive favorable business outcomes (in other words, attribution), and can reward these individuals accordingly. UTM links are the most common mechanism for affiliate tracking.

Affiliate tracking can also be achieved using promo codes. For example, if an influencer can offer his or her audience 10% off a 1-year software subscription with the promo code PERCY10, this allows the company to track precisely how many sales Percy drives. This then enables the company to determine which partnerships are most lucrative and invest in building these relationships and enabling them to do their best work.

Example: Through affiliate tracking, Partner Marketing Manager Lisa identified five partners who were driving 60% of PekoeCorp’s partner-sourced sales each year. She decided to send them each a gift basket of PekoeCorp swag, fancy chocolates, and red wine.

More Partnership terms beginning with
A
Affiliate program

Noun

[ah-fill-ee-it pro-gram]

An affiliate program is an organized system that enables affiliate partners to drive traffic to your properties through tracked links and earn a cut when that traffic converts. Affiliates come in many different forms and they can include influencers, content creators, publications, membership associations, and technology vendors.

In an affiliate program, an online merchant pays affiliates to send them traffic. There is a payout to the affiliate for that traffic, and then if the traffic buys the product, the affiliate receives a commission. An affiliate program is a cost-effective marketing strategy that works for both B2B and B2C brands.

Example: Lisa runs a popular software blog. Loop, a software brand, pays Lisa to place an affiliate link on her blog. When someone buys Loop's software through the link, Lisa gets a payout. Yay!

Full definition ->
Affiliate link

Noun

[aff-ill-ee-it ly-nk]

An affiliate link is tool used in affiliate marketing programs. A unique link is assigned to an affiliate partner by a partner program. When a website user clicks on the link, that click is attributed to the affiliate partner. The link contains the affiliate's ID or username to enable tracking. This means that traffic sent by the affiliate can be recorded (and rewarded).

If the person that clicks the link later converts (for example, by purchasing the software) then that conversion is also attributed to the affiliate partner.

Example: Connectco signed up for Razor's affiliate program and was assigned an affiliate link. Their link got 20,000 clicks each month, meaning a nice payout for Connectco.

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