> For the complete documentation index, see [llms.txt](https://docs.uppromote.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.uppromote.com/basic-knowledge/affiliate-marketing-definition.md).
# What Is Affiliate Marketing?
Affiliate marketing is a way to grow sales by paying others to promote your products. You only pay when their promotion leads to a sale. That's why people call it "performance-based" marketing.
Here's the simple version. A business gives partners (called affiliates) a special link or coupon code. The affiliates share it with their audience. When someone buys through that link, the affiliate earns a commission and the business gets a new sale.
New to affiliate marketing? Read our[ step-by-step guide to setting up your first campaign](https://uppromote.com/blog/affiliate-marketing-merchants-setup/?utm_source=docs\&utm_medium=definition\&utm_campaign=docs).
### The three sides of affiliate marketing
Every affiliate sale involves three people: a merchant, an affiliate, and a customer.
#### 1. The merchant
The merchant sells the product. This can be a solo founder or a large brand. You might also hear them called the seller, vendor, or retailer.
The merchant runs the affiliate program to reach new customers and grow sales. They set the commission and pay the affiliate. Learn more in[ What Does a Merchant Do in Affiliate Marketing?](/basic-knowledge/merchant-roles-in-affiliate-marketing.md)
#### 2. The affiliate
The affiliate promotes the product. You might also hear them called a publisher, partner, or influencer. An affiliate can be one person, a business, a content creator, or even a happy customer.
Their main job is to show people why the product is worth buying. They earn a commission for each sale they bring in. Learn more in[ What Does an Affiliate Do in Affiliate Marketing?](/basic-knowledge/affiliate-roles-in-affiliate-marketing.md)
Affiliates promote in many ways:
* Sharing links on social media
* Writing blog posts or product reviews
* Running email campaigns
* Adding links to their own website
* Posting in forums or communities
#### 3. The customer
The customer buys the product. They are the reason the whole model works.
An affiliate's link or coupon helps customers find products they might like. When a customer buys through an affiliate, that sale becomes a[ referral order](/management/referrals.md). The referral order is what the commission is based on.
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### How a sale gets tracked
Affiliate marketing only works when every sale is tracked to the right affiliate. Here's how that happens:
1. The affiliate shares their unique link or coupon code.
2. A customer clicks the link or uses the code, then places an order.
3. The sale is recorded as a referral order.
4. The merchant approves it, and the affiliate earns a commission.
{% hint style="success" %}
**Good to know**: A sale only counts when it's tracked back to an affiliate. This is usually done with an affiliate link, a coupon code, or the customer's email. See[ How Affiliate Tracking Works in UpPromote](/management/referrals/tracking-types-priority.md).
{% endhint %}
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### How affiliate marketing works in UpPromote
UpPromote runs this whole process for you on Shopify. It creates[ affiliate links](/settings/affiliate-link-settings.md), tracks every[ referral order](/management/referrals.md),[ calculates commission](/management/programs/program-settings/commission-structure.md), and helps you[ pay your affiliates](/management/payments.md). You manage it all inside Shopify.
Ready to try it? Start by[ setting up your first program](/management/programs.md).
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### Frequently asked questions
#### Is affiliate marketing the same as referral marketing?
They're close, but not the same. Affiliate marketing usually rewards partners or creators who promote to a wider audience. Referral marketing usually rewards existing customers for referring friends. UpPromote supports both, including a[ refer-a-friend program](/outreach/affiliate-recruitment/refer-a-friend.md).
#### How do affiliates get paid?
Affiliates earn a commission on each approved referral order. The merchant sets the rate. It can be a flat amount, a percentage, or a tiered rate. The merchant then[ pays affiliates](/management/payments.md) by PayPal or another method.
#### Is affiliate marketing free to start?
For affiliates, yes. Joining a program is free. For merchants, it depends on the tool. UpPromote has a free plan, and paid plans start at $29.99/month. See[ Pricing Plans](/pricing-plans/pricing-details.md).
#### What is a referral order?
A referral order is a sale made through an affiliate's link or coupon code. It's the basis for the affiliate's commission. UpPromote records it after the customer pays.
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### Related articles
* [Glossary: Key Terms in UpPromote](/basic-knowledge/basic-terms.md)
* [What Does a Merchant Do in Affiliate Marketing?](/basic-knowledge/merchant-roles-in-affiliate-marketing.md)
* [What Does an Affiliate Do in Affiliate Marketing?](/basic-knowledge/affiliate-roles-in-affiliate-marketing.md)
* [Set Up Your Affiliate Program](/management/programs.md)
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*Last updated: June 2026*