"How do I create an affiliate program for my website?" usually comes up once a store or service has steady sales, and the answer has five parts: tracking software, a commission you can afford, a cookie length, payout terms and a written affiliate agreement. Get those right and you have a sales channel that only costs money when it works.
This guide is for owners who sell something, such as products, courses or software, and want other sites to promote it. It covers the setup decisions, the clauses your terms need, how to find good partners and how to keep fraud out. It is practical guidance, not legal advice, so have a lawyer review your agreement.
Quick answer
What you need
Tracking, commission rules, cookie length, payout terms and a signed agreement.Time to launch
Two to four weeks for setup; several months to recruit active partners.Cost type
Software fee or network fee, plus commission paid only on tracked sales.Biggest decision
A commission rate your margin can support after refunds and fees.Main risk
Fraud, brand bidding and partners who make claims you cannot back up.
Is it time to create an affiliate program for my website?
A program multiplies what already works. It rarely fixes a product that does not sell. Before you start, check these signs:
- Your sales page converts visitors at a steady rate you can measure.
- You have enough margin to share a slice and still profit.
- Refund rates are low and stable.
- You have a few hours a week to answer partners and check sales.
If you only have a content site with no product of your own, joining programs is the better path. Our guide to creating an affiliate website covers that side.
Tracking: plugin, hosted software or a network
Tracking connects each sale to the partner who sent it. You have three main routes.
| Option | How it works | Suits | Trade-off |
|---|---|---|---|
| Affiliate plugin for your store | Runs inside your own site and records referrals | Small stores starting out | You handle payouts and support yourself |
| Hosted affiliate software | A separate service connected to your checkout | Growing stores and software sellers | Monthly fee, setup time |
| Affiliate network | A marketplace where publishers find and join programs | Owners who want reach fast | Network fees on top of commission |
Whatever you choose, test it end to end: click a partner link, buy, refund, and confirm each step shows correctly in the reports.
Setting commission, cookie length and payouts
Start with your margin, not with what competitors pay. A worked example:
| Item | Amount |
|---|---|
| Average order | 60 |
| Gross margin (40 percent) | 24 |
| Commission at 10 percent of the order | 6 |
| Software or network fees, per sale | about 1 |
| Left before your other costs | about 17 |
Then set the rest of the terms:
- Cookie length. The window, in days, during which a sale still credits the partner after their click. Longer windows attract partners but pay for more sales that might have happened anyway. Thirty days is a common middle ground; pick what fits your buying cycle.
- Hold period. Wait until your refund window closes before paying, so you do not pay on returned orders.
- Payout threshold and schedule. A minimum balance and a fixed monthly date keep admin simple.
- Tiers. A higher rate for top partners rewards quality without raising costs across the board.
What to put in your website affiliate agreement
The agreement is the rulebook partners accept when they join. A useful website affiliate agreement template covers these clauses:
- Commission and attribution: rate, cookie length, which sales count, last-click or other rules.
- Payment terms: threshold, schedule, hold period, refunds and chargebacks.
- Brand bidding: whether partners may bid on your brand name in paid search ads.
- Coupon and deal sites: whether they are allowed, and only with codes you issue.
- Banned traffic: spam email, pop-ups, cookie stuffing, self-referrals and incentivised clicks.
- Claims: partners may only make claims you have approved and can support.
- Disclosure: partners must disclose the relationship clearly. Under US guidance, advertisers can share responsibility for what their partners say. See our page on FTC disclosure rules.
- Trademark use, termination and changes: how your logo may be used, how either side can end the deal, and how you will announce rule changes.
Recruiting affiliates who actually sell
Most partners in any program never make a sale. A few do most of the work. Spend your time finding those few.
- List sites, newsletters and channels your buyers already read.
- Check that they publish honest, detailed content, not just coupon lists.
- Send a short personal email explaining the product, the rate and why it suits their readers.
- Offer a free account or sample so they can test before they write.
- Give them a partner kit: product facts, approved claims, images, and sample disclosure lines from our disclosure examples page.
Add a clear "affiliate program" link in your site footer too, so interested publishers can find the sign-up page.
Stopping fraud and abuse
| Problem | Sign | Fix |
|---|---|---|
| Self-referral | Partner buys through their own link | Ban it in the terms and match names and payment details |
| Cookie stuffing | Many sales with no real click path | Review traffic sources before payout |
| Brand bidding | Partner ads on your brand name | Search your brand regularly and enforce the clause |
| Leaked coupon codes | Sales from codes on unknown deal sites | Issue unique codes per partner |
| Stolen card orders | High refunds and chargebacks from one partner | Hold commission until the refund window closes |
| False claims | Partner promises results you never made | Ask for edits, then remove the partner if ignored |
Running the program month to month
- Check new applications weekly and approve only real sites.
- Review sales quality and refunds before each payout.
- Send partners a short monthly update: new products, offers, best-performing pages.
- Spot-check partner content for disclosures and approved claims.
- Raise rates for partners who send good customers.
If you also want partners to link to you correctly, send them this walkthrough on placing affiliate links.
Questions people ask
How do I set up an affiliate program on my website without a network?
Install an affiliate plugin for your store or connect hosted affiliate software to your checkout. You then recruit partners yourself and handle payouts directly.
What commission should my affiliate program pay?
Work back from your margin after refunds and fees. Physical goods usually pay a lower percentage than digital products, which have higher margins.
Do I need a written affiliate agreement?
Yes. It sets commission, payment, banned traffic and disclosure rules, and it lets you remove partners who break them. Have a lawyer review it before launch.
What cookie length should I choose?
Match it to how long your buyers take to decide. Quick, cheap purchases suit shorter windows; considered purchases suit longer ones.
Is a network or my own software better for a small affiliate program?
A network brings publishers faster but adds fees. Your own software costs less per sale but you must recruit everyone yourself.