Lesson 2: How It Works Affiliate Links, Tracking IDs, Cookies, and Commissions – Complete Course

August 03, 2025


🔶 Lesson 2: How Affiliate Marketing Works

➤ Affiliate Links, Tracking IDs, Cookies, and Commissions – Complete Guide

✅ What is the Real Mechanism of Affiliate Marketing?

Affiliate marketing works through 4 core elements. Let’s understand each of them step-by-step:

  1. Affiliate Link: A unique URL assigned to you by the affiliate program to track clicks and sales.
  2. Tracking ID: Also called UTM or Affiliate ID, it helps platforms identify which affiliate referred the customer.
  3. Cookies: Small browser files that save referral data. This allows you to earn even if the user purchases after a few days.
  4. Commission: A percentage or fixed amount you earn for every successful sale or action via your link.

🔗 1. What is an Affiliate Link?

An affiliate link is a unique URL provided to you by an affiliate program. This link helps the company identify which affiliate referred the sale.

Example:

  • Normal Product Link:
    https://www.amazon.com/product/12345
  • Affiliate Link:
    https://www.amazon.com/product/12345?tag=yourname-21

Here, ?tag=yourname-21 is your unique affiliate ID.

📌 2. What is a Tracking ID? (Affiliate ID / UTM)

Tracking ID is embedded in your affiliate link. It helps identify:

  • Which affiliate shared the link
  • Which platform the traffic came from (e.g., YouTube, Blog, Facebook)
  • Which product was sold

This information is stored by the company’s system to assign the commission properly.

🍪 3. What Are Cookies? Why Are They Important?

Cookies are temporary browser files that store user activity data. When someone clicks your affiliate link, cookies tag that visitor as “your referral.”

Cookies help in:

  • Tracking the buyer back to your referral link
  • Ensuring you receive the commission even if the buyer purchases later

Example Cookie Duration:

If the user purchases within this time, you get paid. Otherwise, no commission.

💸 4. How Are Commissions Calculated?

When a customer purchases via your affiliate link, the platform:

  • Checks tracking & cookies data
  • Verifies your affiliate ID
  • Credits the commission to your account

Commission Rate Examples:

PlatformProduct TypeCommission Rate
AmazonElectronics3% – 5%
Digistore24Digital Products30% – 70%
FiverrFreelance Services$15 – $150 per signup
DarazPhysical ProductsRs. 1 – Rs. 10,000 per sale

🎯 Real-Life Step-by-Step Example:

Let’s say you are promoting a product called "The Genius Wave" from Digistore24.

  1. You get your affiliate link:
    https://www.digistore24.com/redir/528291/EarnWithQadeer/
  2. You add this link to your YouTube video description.
  3. A viewer clicks the link and makes a purchase.
  4. Digistore24 checks cookies and finds your ID.
  5. You receive a $40 commission.

📉 What If the Buyer Purchases Later?

If the customer makes a purchase within the cookie duration, you’ll get the commission. But if the cookie expires, no commission will be paid.

That’s why longer cookie durations are better for affiliate marketers.

🔐 Advanced Terms: Postback URL, Pixels & Deep Linking

These advanced tools are useful when:

  • You run paid ads
  • You build custom landing pages
  • You work across multiple affiliate platforms

But for beginners, understanding affiliate links and cookie tracking is enough to get started.

📝 Summary – Key Concepts You Must Understand:

ConceptMeaning
Affiliate LinkYour unique tracking URL
Tracking IDTells the system the sale belongs to you
CookiesTemporarily tag the visitor to your account
CommissionYou get paid when the sale is confirmed


❓ Frequently Asked Questions (FAQs)

1. What is Affiliate Marketing?
Affiliate marketing is a performance-based business model where individuals (affiliates) earn commissions by promoting products or services and generating sales or leads for a company.

2. How Does Affiliate Marketing Work Step-by-Step?
It works in a few simple steps:

  • Step 1: Join an affiliate program
  • Step 2: Choose products or services to promote
  • Step 3: Get your unique affiliate link
  • Step 4: Share the link via website, YouTube, social media, etc.
  • Step 5: Earn commission when someone makes a purchase through your link

3. Is This Affiliate Marketing Course Really Free?
Yes! This course is 100% free. It offers valuable knowledge, practical steps, and proven strategies without any charges.

4. Do I Need a Website or Blog to Start Affiliate Marketing?
While having a website helps, it’s not necessary. You can promote affiliate links through YouTube, WhatsApp, Facebook groups, Instagram, Quora, or email marketing.

5. How Much Can I Earn Through Affiliate Marketing?
Earnings depend on your traffic, niche, and effort. Some beginners earn a few dollars a month, while top affiliates make thousands of dollars consistently.

6. Is Affiliate Marketing Legal and Safe?
Absolutely! It’s a legitimate business model used by companies like Amazon, ClickBank, and ShareASale. However, always disclose affiliate links and follow platform guidelines.

7. How Long Will It Take to See Results?
It varies. Some people see results in weeks, others may take a few months. Consistency, quality content, and smart promotion are key.

8. Can I Do Affiliate Marketing Without Investment?
Yes, you can start with zero investment using free platforms like Blogger, YouTube, or social media. However, investing in a domain and email marketing tools later can boost growth.

9. Is Any Technical Knowledge Required?
Not much. Basic computer skills and internet usage are sufficient to get started. The course simplifies everything step by step, even for beginners.

10. Where Can I Share My Affiliate Links?
You can share them in:

  • Blog posts
  • YouTube video descriptions
  • Facebook pages/groups
  • Instagram bio/stories
  • WhatsApp/Telegram groups
  • Quora answers
  • Email newsletters

🛒 Top 10 Amazon Products for Affiliate Marketers

Below is a handpicked list of tools and gadgets perfect for beginners and professionals in affiliate marketing. Boost your setup and start your journey like a pro!

Note: These are affiliate links. I may earn a small commission if you purchase through them – at no extra cost to you!


Click on the links below to learn more:
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