What is Affiliate Marketing?

LEARN WHAT AFFILIATE MARKETING IS, HOW IT WORKS, AND HOW TO GROW A

HIGH-ROI PROGRAM.

What You Will Learn in This Guide

Whether you're new to affiliate marketing or looking to scale an existing program, this guide covers everything you need to understand how affiliate marketing works and how to make it work for you.

In this comprehensive guide, you’ll learn:

whatIs

What is affiliate marketing, and why is it important in 2025?

Affiliate marketing is a performance-based channel where brands partner with third parties, called affiliates or publishers, who promote their products or services in exchange for a commission on resulting sales or leads. These partners can be bloggers, influencers, coupon sites, media publishers, loyalty platforms, or even B2B content experts.

Unlike traditional advertising, affiliate marketing operates on outcomes. You pay for performance, not potential. That makes it one of the most cost-efficient, scalable, and accountable digital marketing strategies available today.

In 2024 alone, U.S. brands invested over $13.6 billion in affiliate marketing, driving $113 billion in online sales, according to the PMA Industry Study. That’s nearly 10% of all eCommerce revenue.

And it’s growing. As brands look to diversify away from rising paid media costs and better track ROI, affiliate is becoming a central channel in both DTC and B2B growth strategies.

At AIM, we’ve seen firsthand how affiliate programs, when built with the right partners, platforms, and strategy, can drive top and bottom funnel results while delivering consistent, trackable ROI. Whether you're just starting out or scaling to new markets, affiliate marketing can be your most efficient growth lever in 2025 and beyond.

howDoes

How does affiliate marketing work from click to commission?

Affiliate marketing follows a simple but powerful performance model. It relies on partnerships between a brand and independent marketers, called affiliates, who promote products or services in exchange for a commission on any resulting sale, lead, or conversion.

Here’s a step-by-step look at how the process works:

1. Affiliate shares a unique tracking link

The affiliate receives a personalized URL from the brand’s affiliate platform (e.g., Impact, Partnerize, CJ). They place this link in blog posts, newsletters, social media, or deal sites.

2. Customer clicks the affiliate link

A user sees the affiliate’s content and clicks the link. This signals intent—and triggers the tracking.

3. Customer buys a product (or completes a lead action)

The user completes a qualifying action, usually a purchase, but sometimes a sign-up, free trial, or quote request, depending on the brand’s goals.

4. The affiliate network tracks the conversion

Platforms like Impact or ShareASale use cookies or server-to-server tracking to attribute the sale or lead back to the referring affiliate.

5. Affiliate gets paid a commission

Once the conversion is validated, the affiliate earns a commission, often a flat rate or a percentage of the sale. Payments are usually automated based on defined terms.

This performance model creates a win-win: brands only pay for results, while affiliates earn by driving real value. It’s scalable, cost-efficient, and ideal for brands looking to grow revenue with minimal risk.

whatMakes

What makes affiliate marketing different from influencer or paid media?

Affiliate marketing is often confused with influencer marketing or paid advertising, but while they can work together, they operate very differently.

The key difference? Affiliate marketing is outcome-based. You pay affiliates only after a conversion happens, whether that’s a sale, sign-up, or qualified lead. With influencers or paid ads, you're typically paying upfront for exposure, regardless of performance.

Here’s how they compare:

	Affiliate Marketing	Influencer Marketing	Paid Media
Payment Model	Commission on performance (e.g. sale, lead)	Flat fee or paid post (sometimes hybrid)	Cost-per-click (CPC), cost-per-impression (CPM), or flat rate
Risk Profile	Low – payment only after ROI	Medium to high – payment without guaranteed result	Medium – performance-based, but upfront costs usually required
Measurement	Fully trackable via platforms like Impact or Partnerize	Often measured via reach or engagement (harder to track conversions)	Click-through, conversion, and spend tracked via ad platforms
Partner Type	Long-term relationships with publishers	One-time or campaign-based influencer activations	Algorithm-based, audience targeting

Affiliate marketing also offers more diverse reach. While influencers and ads are great for top-of-funnel awareness, affiliates can touch every stage of the customer journey, from blog reviews and comparison sites to loyalty and cashback platforms.

To learn more about AIM's Influencer Integrations, click here.

whatAre

What are the main types of affiliate partners brands work with?

One of the strengths of affiliate marketing is its diversity. Successful programs typically include a mix of partner types, each playing a unique role in the funnel, from awareness to conversion to loyalty.

Here are some core categories of affiliate partners AIM works with across DTC and B2B brands:

Content Publishers & Review Sites

Examples: Outdoor Crunch, Wirecutter

Long-form articles, product roundups, reviews
High SEO authority; great for discovery and comparison
High ROAS potential, especially for known brands

Loyalty, Cashback & Rewards Platforms

Examples: Rakuten, Capital One Shopping

Users earn cash or points for purchases
Great for conversion-stage buyers
Works well during promos, tentpoles, or clearance events

Coupon & Deal Sites

Examples: RetailMeNot, Honey

Capture high-intent, last-click traffic
Sensitive to attribution & fraud—best used with clear policies
Strong at converting undecided shoppers

Influencers & Creator Affiliates

Examples: TikTok creators, YouTube creators

Authentic voice and audience trust
Ideal for product launches, new markets, or UGC
Often requires hybrid commission + flat fee

Closed User Groups & Employee Networks

Examples: Perkopolis, Vengo

Highly engaged niche audiences (corporate, education, etc.)
Often overlooked, but high-converting

Sub-networks & Tech Affiliates

Examples: Skimlinks, BNPL platforms

Aggregated affiliate traffic via plug-and-play integrations
Easy scale, but less control over placements
Requires strong attribution and monitoring

howDo

How do top affiliate partners drive results for DTC and B2B brands?

The most successful affiliate programs don’t rely on one type of partner, they use a strategic mix of publishers tailored to their business model. Whether you're a direct-to-consumer (DTC) brand or a B2B company, different affiliate partners drive impact at different points in the buyer journey.

Here’s how top-performing partners contribute to results in each model:

For DTC Brands: Driving Reach, ROAS, and Conversion

Affiliate partners help DTC brands:

Build awareness and credibility through content sites, review blogs, and creators
Capture intent via search-optimized articles and deal platforms
Boost conversion rates with loyalty and cashback incentives
Extend promotional reach during sales, launches, and holiday periods

DTC brands often see the strongest ROI when they diversify across the funnel—using content to influence discovery, influencers to drive urgency, and reward partners to convert. Many high-performing consumer brands earn 10–20% of their online revenue from affiliate marketing when optimized.

For B2B Brands: Enabling Qualified Leads and Pipeline Influence

In B2B, affiliate performance is less about volume and more about quality. The best partners:

Educate audiences through thought leadership and industry-specific content
Drive demo requests or form fills from decision-makers
Align with long sales cycles, supporting MQL→SQL→closed-won influence
Connect with niche audiences via professional communities or integration partners

Top B2B programs track beyond just lead counts—they look at partner influence across the pipeline and tie commission to high-value conversions like product demos, booked meetings, or CRM-qualified opportunities.

To learn more about AIM's B2B Solutions, click here.

What They Have in Common: Performance and Partnership

Whether DTC or B2B, high-performing affiliates succeed because:

They align with your ideal customer journey
They receive the right commission incentives and assets
They’re activated and optimized continuously, not just onboarded and forgotten

whatDoes

What does a successful affiliate marketing strategy look like?

The most effective affiliate programs aren’t built overnight—they’re strategically designed to grow with your business. At AIM, we’ve developed a proven three-phase framework that guides brands through every stage of the affiliate lifecycle: Launch, Optimize, and Scale.

Phase 1: Launch with Purpose

Whether you're starting from scratch or relaunching a program, the first step is laying the foundation:

Define goals aligned to your business model (e.g., revenue, MQLs, ROAS)
Select the right network platform (Impact, CJ, ShareASale, Partnerize, etc.)
Develop program policies, commission structures, and assets
Recruit high-fit partners across content, loyalty, and influencer categories

A strong launch phase sets expectations, builds early momentum, and ensures tracking and attribution are working before major investments.

Phase 2: Optimize for ROI

Once active, the focus shifts to partner activation and performance management. This includes:

Segmenting your partner base to personalize communications and incentives
Testing new creative formats, content placements, or conversion flows
Adjusting commissions or bonuses to drive quality traffic and lift AOV
Identifying underperformers or fraud signals with network and pixel data

Optimization isn’t a one-time task, it’s a continuous process of fine-tuning every aspect of the funnel.

Check out our blog post about Optimizing Your Program here to learn more.

Check out our blog post about the Affiliate-Influencer landscape here to learn more

Phase 3: Scale with Intention

With a mature program, the goal is sustainable growth and efficiency:

Expand internationally with region-specific partners
Layer on influencer-affiliate hybrid models
Integrate affiliate into broader lifecycle marketing (email, paid, CRM)
Forecast performance and build financial models tied to business KPIs

Scaling well means knowing not just where to grow, but how to do it profitably.

Check out our blog post about Affiliate Strategy here to learn more.

howCanBrands

How can brands recruit and activate high-performing affiliates?

Recruiting the right affiliates is one of the most critical, and overlooked, levers in building a successful program. But recruitment alone isn't enough. Top affiliates only deliver results when they're properly onboarded, incentivized, and engaged.

At AIM, we treat recruitment and activation as two sides of the same growth engine.

Step 1: Identify High-Fit Partners

Great affiliates aren’t just high-traffic publishers. They’re the ones that align with your audience, brand voice, and conversion funnel. Start by:

Analyzing top competitors’ affiliate ecosystems using tools like Similarweb and Impact Marketplace
Sourcing from trusted networks, aggregators, and curated lists by vertical
Looking beyond traffic volume, prioritize relevance, SEO authority, engagement rate, or niche influence

Step 2: Personalize Outreach and Incentives

Generic mass emails get ignored. Successful recruitment strategies use:

Custom value propositions that show why your brand is a strong match
Tiered commission offers to reflect content effort vs. conversion scale
Exclusive codes, first-look launches, or bonus pools to entice new sign-ups

Your affiliate pitch should answer: “Why should I promote this brand instead of another?”

Step 3: Accelerate Activation

Once affiliates join, the clock starts ticking. The first 30–60 days are critical. Accelerate performance by:

Providing ready-to-go creatives, links, and messaging
Sharing product education or conversion tips
Sending performance-based nudges (e.g., “You’re 3 clicks away from bonus tier”)

Many top affiliates won’t promote until they feel confident in your brand’s value and your support.

Step 3: Accelerate Activation

Once affiliates join, the clock starts ticking. The first 30–60 days are critical. Accelerate performance by:

Providing ready-to-go creatives, links, and messaging
Sharing product education or conversion tips
Sending performance-based nudges (e.g., “You’re 3 clicks away from bonus tier”)

Many top affiliates won’t promote until they feel confident in your brand’s value and your support.

Step 4: Maintain Engagement Over Time

Activation isn’t a one-time launch. To drive long-term results:

Segment and communicate regularly based on performance tiers
Offer quarterly promotions or exclusive placements
Host private webinars or education drops for top partners
Solicit feedback on what they need to succeed

Onboard them like team members, with strategies tailored to their content type, audience, and funnel role.

Working with a performance marketing agency like AIM accelerates every stage of this process. From sourcing high-value partners to crafting outreach sequences, onboarding flows, and activation incentives, we bring the playbooks, platforms, and partner relationships that shorten the learning curve and maximize early ROI. For many brands, AIM becomes the difference between signing affiliates, and turning them into long-term revenue drivers.

howDoBrands

How do brands measure affiliate marketing performance?

Affiliate marketing is one of the most measurable channels in digital marketing. Because every click, conversion, and payout is tracked through affiliate platforms, brands gain real-time visibility into what’s working and what’s not.

At a basic level, performance is tracked through a combination of conversion metrics, efficiency metrics, and influence metrics, depending on the brand’s goals and vertical.

Phase 3: Scale with Intention

With a mature program, the goal is sustainable growth and efficiency:

Expand internationally with region-specific partners
Layer on influencer-affiliate hybrid models
Integrate affiliate into broader lifecycle marketing (email, paid, CRM)
Forecast performance and build financial models tied to business KPIs

Scaling well means knowing not just where to grow, but how to do it profitably.

Core KPIs Every Program Should Track

Revenue – Total sales driven by affiliate activity
Return on Ad Spend (ROAS) – Revenue divided by commission + fixed costs
Conversion Rate – Click-to-sale or click-to-lead rate
Average Order Value (AOV) – Helpful for segmenting by partner type
Cost per Acquisition (CPA) – Useful for comparing affiliate vs. other channels

Advanced KPIs for B2B and Multi-Touch Journeys

For B2B and longer sales cycles, success isn’t just about transactions, it’s about influence and lead quality. Advanced programs track:

Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs)
Pipeline contribution or influence (especially in SaaS and high-ticket verticals)
Lead-to-close rate from affiliate-sourced traffic
Touchpoint depth: First-click, last-click, and multi-touch attribution

Channel-Level and Partner-Level Views

Strong programs also benchmark:

ROAS by partner type (e.g., content vs. coupon vs. loyalty)
Top-performing partners by vertical or funnel stage
New vs. returning customer splits
Share of revenue driven by active partners

Check out our blog post about the Affiliate KPIs here to learn more.

whatsTheDiff

What’s the difference between B2C and B2B affiliate marketing?

While affiliate marketing follows the same core model across industries (partners drive traffic, brands pay for performance) the strategies behind B2C and B2B programs differ significantly. The buyer journey, commission triggers, and partner incentives must all be tailored to the audience.

B2C Affiliate Marketing: Fast Funnel, Broad Reach

In direct-to-consumer (DTC) programs, the goal is typically to drive immediate purchases. B2C affiliate strategies focus on:

High-volume partner types like content sites, influencers, coupon platforms, and loyalty apps
Short sales cycles, where purchase decisions happen in minutes or hours
Commission per sale, often a percentage of order value
Promotional calendars, seasonal launches, and performance-based incentives

B2C programs prioritize scale and ROAS, success comes from optimizing partner mix, content timing, and average order value.

B2B Affiliate Marketing: Quality Leads, Long Sales Cycles

In direct-to-consumer (DTC) programs, the goal is typically to drive immediate purchases. B2C affiliate strategies focus on:

Partner types include SaaS reviewers, niche blogs, LinkedIn creators, and professional communities
Longer decision timelines, with leads moving through MQL → SQL → pipeline
Commission triggers vary: MQLs, scheduled demos, or even closed-won deals
High average contract value (ACV) means fewer conversions can drive strong ROI

B2B programs demand tighter funnel tracking, CRM alignment, and flexible commission models to align with complex journeys.

Where They Overlap

Both B2C and B2B affiliate programs succeed when they:

Recruit partners that align with the target buyer
Incentivize performance based on true business outcomes
Use reliable tracking and attribution models
Maintain active communication and optimization loops

whatAreTrends

What are the biggest affiliate marketing trends to watch in 2025?

Affiliate marketing is evolving rapidly. As brands push for efficiency, measurement, and creative growth, the channel is no longer just about coupon codes and cashback, it’s becoming a full-funnel performance engine.

Here are the top trends shaping affiliate marketing in 2025:

1. Creator-Affiliate Convergence

Creators and influencers are increasingly joining affiliate programs, not just for exposure, but for performance payouts. Expect more:

Hybrid deals (flat fee + commission)
Creator UGC embedded into affiliate campaigns
TikTok and YouTube creators tracking sales via deep links and promo codes

2. AI-Powered Partner Discovery and Recruitment

AI tools are accelerating how brands find and evaluate affiliate partners. Platforms and agencies are now:

Using AI to score partners based on content fit, SEO strength, and engagement
Automating outreach personalization at scale
Predicting partner potential using historical vertical data

Check out our blog post about AI and Affiliate Marketing here to learn more.

3. Affiliate as a Lifecycle Channel, Not Just Acquisition

Brands are no longer thinking of affiliate as just a top-of-funnel acquisition tool. In 2025, affiliate is playing a larger role across the entire customer lifecycle:

Retention and loyalty partners help extend LTV
Upsell and cross-sell campaigns are powered by strategic affiliate placements
Email and SMS affiliates are being used to re-engage existing customers with trackable offers
Closed-user group platforms (like employee benefits or member deals) are becoming essential for lifetime value plays

4. B2B Affiliate Grows Up

Affiliate is no longer just a DTC channel. B2B brands (especially in SaaS, finance, and professional services) are:

Launching formal partner programs tied to demos or SQLs
Recruiting content reviewers, integration partners, and LinkedIn creators
Measuring pipeline influence through CRM and attribution tools

Check out our blog post about B2B Affiliate Analytics here to learn more.

5. Affiliate Data Ties Into Broader Marketing Analytics

Affiliate data is now integrated into brand-wide dashboards and marketing mix models. That means:

Multi-touch attribution is expected, not optional
Brands are comparing affiliate vs. paid media CAC and LTV
Partner-level ROAS is used to shape budget and campaign strategy

Check out our blog post about Data Driven Strategies here to learn more.

howIsCreator

How is affiliate marketing evolving for the creator economy?

In 2025, creators are no longer just amplifiers, they’re performance marketers. As affiliate tracking becomes more flexible and commission models more creator-friendly, the creator economy is rapidly converging with affiliate marketing.

Here’s how affiliate is evolving to better serve creators and how brands are adapting:

1. Creators Want Ongoing Revenue, Not Just Flat Fees

Creators, especially those with loyal niche audiences, are increasingly interested in earning passive income from evergreen content. Affiliate gives them:

A way to monetize content long after a campaign ends
Commission-based upside tied to performance
Flexibility to promote products they actually use and trust

2. Affiliate Platforms Are Getting Creator-Friendly

Networks and platforms are making it easier for creators to participate:

Short-form tracking links optimized for social (e.g., TikTok, Instagram Stories)
Promo code attribution that tracks even without a click
Mobile-first dashboards and content kits for frictionless promotion