1. When an affiliate joins a merchant's programme, he or she is assigned a unique ID and a URL to use when advertising the company's goods.
2. The affiliate inserts the link in their blog post and/or email marketing efforts, inviting readers to click it to learn more.
3. A cookie identifying the affiliate is installed on the website visitor's computer when a potential buyer clicks on the link to visit the affiliate partner's site. The cookie guarantees that the publisher receives credit for the referral sale, even if it occurs days or weeks later.
4. When a customer completes the transaction process, the merchant examines the sales record for a cookie that identifies the source of the referral.
5. If the merchant discovers a cookie with an affiliate ID, the affiliate receives credit for the transaction.
6. The merchant provides reports so that the affiliate may track their referrals (clicks) and sales.
7. The affiliate commission is paid by the merchant at the conclusion of each payment period (i.e. revenue sharing).