How Affiliate Links, Cookies and Commissions Actually Work
A clear, beginner-friendly explanation of how affiliate tracking links, cookies, and commission payouts work behind the scenes in affiliate marketing.
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How commissions are calculated
Once a sale is attributed to you, the program calculates your commission. Structures vary, but the common ones are:
| Commission type | How you earn | Typical use |
|---|---|---|
| Percentage of sale | A share of the order value | Most e-commerce and marketplace programs |
| Flat fee per sale | A fixed amount per purchase | Hosting, software, sign-up offers |
| Per lead | Paid when someone signs up or submits a form | Finance, insurance, app installs |
| Recurring | Paid every month the customer stays | Subscription tools and SaaS |
Recurring commissions are especially valuable because one referral can pay you for months, as long as that customer keeps their subscription active.
The journey from click to payout
A commission does not land in your account the moment someone buys. It passes through several stages.
- Click — the visitor uses your link and the cookie is set.
- Conversion — they complete a qualifying purchase within the cookie window.
- Pending — the commission is recorded but held during a confirmation period.
- Confirmation — once the return or refund window passes and the order is verified, it is approved.
- Payout — after you cross the minimum threshold, the program pays you.
Why the pending stage exists
The confirmation period protects merchants from paying on orders that get cancelled or returned. If a buyer returns the product, that commission is reversed. This is why your "pending" earnings and your "confirmed" earnings are different numbers, and why payouts take time.