Affiliate marketing comes with its own vocabulary. This glossary defines the key terms you'll encounter when running an affiliate program for your SaaS.
A
Affiliate
A third party who promotes your product in exchange for commission on resulting sales. Also called a partner, publisher, or associate.
Affiliate Agreement
The legal terms governing the relationship between your company and affiliates. Covers commission rates, prohibited activities, payment terms, and termination conditions.
Affiliate ID
A unique identifier assigned to each affiliate for tracking purposes. Usually appears in their referral links.
Affiliate Link
A URL containing tracking parameters that identify the affiliate who shared it. When visitors click and convert, the affiliate gets credit.
Example: yoursite.com/?ref=affiliate123
Affiliate Manager
The person responsible for running your affiliate program—recruiting affiliates, providing support, monitoring performance, and optimizing the program.
Affiliate Network
A third-party platform connecting merchants with affiliates. Examples include ShareASale, CJ Affiliate, and Impact. Networks handle tracking, payments, and provide access to established affiliates.
Affiliate Portal
A dashboard where affiliates access their tracking links, marketing materials, performance reports, and payment information.
Affiliate Program
The system through which you recruit, track, and compensate affiliates for referring customers.
Affiliate Software
Tools that manage your affiliate program—tracking referrals, calculating commissions, managing affiliates, and processing payouts. Examples: PromoteKit, Rewardful, FirstPromoter.
Attribution
The process of crediting conversions to the appropriate affiliate. Determines which affiliate gets paid when a customer converts.
C
CAC (Customer Acquisition Cost)
The total cost to acquire a customer through a specific channel. For affiliates: commission paid plus any program costs divided by customers acquired.
Chargeback
When a customer disputes a payment with their bank. Typically results in commission reversal for the affiliate.
Click-Through Rate (CTR)
The percentage of people who click an affiliate link out of those who see it.
Formula: Clicks ÷ Impressions × 100
Commission
The payment an affiliate earns for a successful referral. Can be a percentage of revenue, flat fee, or combination.
Commission Rate
The percentage or dollar amount affiliates earn per conversion.
Example: 25% recurring, $50 flat fee, or $100 + 10% recurring
Conversion
When a referred visitor completes the desired action—typically becoming a paying customer.
Conversion Rate
The percentage of referred visitors who convert.
Formula: Conversions ÷ Clicks × 100
Cookie
A small file stored in a visitor's browser that tracks their source. Used to attribute conversions to affiliates even if purchase happens days later.
Cookie Duration
How long the tracking cookie remains valid. Also called cookie window or attribution window.
Typical range: 30-90 days for SaaS
Cookie Stuffing
A fraudulent practice where cookies are placed in user browsers without legitimate clicks. Violates virtually all affiliate program terms.
D
Deep Link
An affiliate link pointing to a specific page on your site rather than the homepage.
Example: yoursite.com/pricing?ref=affiliate123 instead of yoursite.com?ref=affiliate123
E
Earnings Per Click (EPC)
Average earnings per click for an affiliate or across your program. Key performance metric.
Formula: Total Commissions ÷ Total Clicks
F
First-Click Attribution
An attribution model where the first affiliate to introduce a customer gets credit, regardless of later touchpoints.
Flat-Rate Commission
A fixed dollar amount per conversion rather than a percentage.
Example: $100 per new customer
G
Gross Commission
Total commissions earned before adjustments for refunds, chargebacks, or clawbacks.
I
Impression
A single view of an affiliate link or ad. Used to calculate click-through rate.
L
Last-Click Attribution
The most common attribution model—the last affiliate link clicked before conversion gets credit.
Lifetime Commission
Recurring commissions paid for the entire duration a referred customer remains active.
LTV (Lifetime Value)
The total revenue expected from a customer over their entire relationship with your business.
M
Multi-Level Marketing (MLM)
A commission structure where affiliates earn from their own referrals plus referrals made by affiliates they recruited. Sometimes controversial; different from standard affiliate programs.
Multi-Touch Attribution
Attribution models that credit multiple affiliates who influenced a conversion, distributing commission across touchpoints.
N
Net Commission
Commissions after adjustments for refunds, chargebacks, and clawbacks.
O
One-Time Commission
A single payment per conversion, regardless of customer lifetime or ongoing payments.
P
Payout
The transfer of earned commissions to an affiliate. Usually processed monthly after reaching a minimum threshold.
Payout Threshold
The minimum balance required before processing a payout.
Typical: $50-100
Performance Bonus
Additional payments beyond standard commissions for hitting milestones or exceptional performance.
Promo Code
A discount code tied to an affiliate that tracks referrals independently of or alongside links.
Example: AFFILIATE20 for 20% off, also credits the affiliate
Q
Qualification Period
The time between a conversion and when the commission becomes payable. Allows for refund processing before paying commissions.
Typical: 30-60 days
R
Recurring Commission
Ongoing commissions paid each billing cycle for as long as the referred customer remains active.
Referral
A customer who arrived through an affiliate's link or promo code.
Referral Program
Often confused with affiliate program. Referral programs typically involve existing customers referring friends; affiliate programs involve any third party promoting for commission.
Refund Clawback
The practice of reversing commissions when a referred customer receives a refund.
Reversal
The removal of a commission from an affiliate's balance, typically due to refund or fraud.
S
Self-Referral
When an affiliate refers themselves. Typically prohibited in program terms.
Split Commission
Dividing commission between multiple affiliates who influenced a conversion.
Sub-Affiliate
An affiliate recruited by another affiliate, relevant in MLM-style programs with multiple commission tiers.
Swipe Copy
Pre-written promotional content (emails, social posts) affiliates can customize and use.
T
Tiered Commission
Commission rates that increase as affiliates hit performance thresholds.
Example:
- 1-10 referrals: 20%
- 11-25 referrals: 25%
- 26+ referrals: 30%
Tracking
The technology and process of monitoring clicks, attributing conversions, and calculating commissions.
Two-Tier Program
A commission structure where affiliates earn from their direct referrals plus a smaller percentage from affiliates they recruit.
U
Unique Clicks
Clicks from distinct visitors, as opposed to multiple clicks from the same person.
V
Void
A canceled commission that never becomes payable, as opposed to a reversal of already-earned commission.
W
White Label
Affiliate portals or materials branded as your company rather than the affiliate software provider.
Key Metrics Summary
| Metric | Formula | What It Measures |
|---|---|---|
| Conversion Rate | Conversions ÷ Clicks | Funnel effectiveness |
| Click-Through Rate | Clicks ÷ Impressions | Link/ad appeal |
| Earnings Per Click | Commissions ÷ Clicks | Affiliate profitability |
| Average Commission | Total Commissions ÷ Conversions | Per-customer cost |
| Active Affiliate Rate | Active Affiliates ÷ Total | Program engagement |