What is affiliate tracking?

Affiliate tracking is the process of monitoring and recording the activity and interactions of users who click on affiliate links or engage with affiliate promotions, with the goal of attributing sales, conversions, or other desired actions to the appropriate affiliates and compensating them accordingly.

Here's how affiliate tracking typically works:

1. **Affiliate Links**: Affiliates are provided with unique tracking links or URLs by the merchant or affiliate network. These links contain special tracking parameters or codes that identify the affiliate and the specific campaign or promotion.

2. **Click Tracking**: When a user clicks on an affiliate link, the tracking parameters are appended to the URL, and the user is redirected to the merchant's website or landing page. The tracking parameters are used to record data about the click, such as the affiliate ID, timestamp, referring website, and other relevant information.

3. **Cookie Placement**: Upon clicking on the affiliate link, a tracking cookie is typically stored on the user's browser. This cookie contains the affiliate ID or tracking code and helps track the user's activity and interactions with the merchant's website over a specified period.

4. **User Activity Tracking**: As the user navigates the merchant's website or takes action, such as making a purchase, filling out a form, or signing up for a service, the tracking cookie is used to attribute the action to the appropriate affiliate. The affiliate tracking system records the user's activity, including the action taken, the order value, and other relevant data.

5. **Attribution and Commission Calculation**: Once the user completes a desired action, the affiliate tracking system attributes the sale or conversion to the corresponding affiliate based on the tracking information collected. The affiliate is then credited with a commission or referral fee based on the agreed-upon terms of the affiliate program.

6. **Reporting and Analytics**: Affiliate tracking systems generate reports and analytics to provide affiliates and merchants with insights into the performance of affiliate promotions. This includes tracking metrics such as clicks, conversions, sales, commissions earned, conversion rates, and other key performance indicators.

Overall, affiliate tracking is essential for accurately attributing sales and conversions to affiliates, tracking the effectiveness of affiliate promotions, and ensuring fair compensation for affiliates based on their contributions to driving revenue and results for the merchant. It relies on the use of tracking links, cookies, and tracking systems to monitor user interactions and track affiliate activity throughout the customer journey.