Affiliate Marketing Glossary: 60+ Terms Every SaaS Founder Should Know

Affiliate marketing has its own vocabulary. If you are launching an affiliate program for the first time, the jargon can be overwhelming. This glossary defines over 60 key terms in plain language, organized by category, so you can navigate conversations with affiliates, evaluate tracking platforms, and make informed decisions about your program.

Each definition is written for SaaS founders and business operators — not marketing academics. Where a term has practical implications for your program, we explain what it means for your business.

Affiliate — A person or company that promotes your product in exchange for a commission on each conversion they generate. Affiliates can be bloggers, influencers, review sites, comparison platforms, or even existing customers. They are sometimes called partners, referrers, or publishers.

Merchant — The business that runs the affiliate program and sells the product or service. Also known as the advertiser, brand, or vendor. In SaaS affiliate programs, the merchant is the software company offering the subscription product.

Affiliate Program — A structured arrangement where a merchant pays affiliates a commission for driving conversions. The program defines the commission structure, tracking method, cookie duration, payment terms, and rules of engagement. A single merchant can run multiple programs targeting different products or audience segments.

Commission — The payment an affiliate earns for generating a qualifying conversion. Commissions can be a flat fee per action, a percentage of the sale amount, or a recurring percentage of subscription revenue. The commission amount and structure are defined in the affiliate program's terms.

Conversion — The specific action that triggers a commission payment. In SaaS affiliate programs, a conversion is typically a paid subscription, though it can also be a trial signup, a demo request, or any other measurable action defined by the merchant. The conversion is the moment when the affiliate earns their commission.

Click — A recorded instance of a potential customer clicking on an affiliate's referral link. Clicks are the starting point of the affiliate tracking chain. Each click is logged with metadata including timestamp, device type, geographic location, and referring page.

Referral Link — A unique URL assigned to each affiliate that identifies them as the source of a visitor. When a customer clicks a referral link and later converts, the tracking platform uses this link to attribute the conversion to the correct affiliate. Referral links typically contain a parameter like ?ref=partner123 or use a custom subdomain.

Cookie Window (Cookie Duration) — The length of time a tracking cookie remains active in a visitor's browser after they click an affiliate link. If the visitor converts within the cookie window, the affiliate receives credit. Common windows range from 30 to 90 days. Longer windows benefit affiliates; shorter windows reduce the risk of misattribution. Server-side tracking reduces dependence on cookie windows.

Attribution — The process of assigning credit for a conversion to a specific affiliate or marketing channel. Attribution determines which affiliate gets paid when a customer converts. Different attribution models (first-touch, last-touch, multi-touch) assign credit differently depending on whether the affiliate was the first point of contact, the last, or one of several touchpoints in the customer journey.

Affiliate Network — A platform that acts as an intermediary between merchants and affiliates. Networks like CJ Affiliate, ShareASale, and Impact.com provide tracking technology, a marketplace for discovering programs, and payment processing. Networks charge fees (typically 20-30% of commissions) but provide access to large pools of affiliates.

Affiliate Manager — The person responsible for running an affiliate program. Their duties include recruiting affiliates, providing promotional materials, monitoring performance, handling disputes, preventing fraud, and optimizing the program for growth. In smaller companies, this role is often handled by a marketing or growth team member.

Affiliate Portal (Affiliate Dashboard) — A web interface where affiliates can view their performance data, access referral links, download marketing materials, track their earnings, and manage their account. A well-designed portal improves affiliate engagement and reduces support requests.

Referral — A customer or lead that was sent to the merchant by an affiliate. The referral is tracked from the initial click through to conversion. In common usage, "referral" can refer to both the act of recommending a product and the person who was recommended.

Server-Side Tracking — A tracking method where affiliate attribution data is stored on the server rather than in the visitor's browser. Conversions are reported via webhooks from the payment processor, making tracking immune to ad blockers, browser privacy features, and cookie restrictions. Server-side tracking delivers near-perfect accuracy and is the recommended approach for SaaS affiliate programs.

Client-Side Tracking — A tracking method that relies on JavaScript running in the visitor's browser to record clicks and conversions. Client-side tracking uses cookies or local storage to maintain attribution. It is easier to implement than server-side tracking but is vulnerable to ad blockers, browser privacy features, and cookie consent requirements, which can cause 20-40% of conversions to go untracked.

Postback URL (Server-to-Server Callback) — A URL endpoint that receives conversion data directly from one server to another, bypassing the browser entirely. When a conversion occurs, the merchant's server sends an HTTP request to the affiliate platform's postback URL with transaction details. This method provides the same accuracy benefits as webhook-based server-side tracking.

Pixel Tracking — A conversion tracking method that uses an invisible image or JavaScript snippet embedded on a confirmation page. When the page loads after a purchase, the pixel fires and reports the conversion to the tracking platform. Pixel tracking is simpler than server-side integration but shares the vulnerabilities of client-side tracking — ad blockers can prevent the pixel from loading.

Fingerprinting (Browser Fingerprinting) — A tracking technique that identifies visitors based on their browser and device characteristics (screen resolution, installed fonts, browser version, etc.) rather than cookies. Fingerprinting can work when cookies are blocked but raises privacy concerns and is increasingly restricted by browsers. It is less accurate than cookie or server-side methods and is generally not recommended as a primary tracking approach.

First-Touch Attribution — An attribution model that gives full credit for a conversion to the first affiliate the customer interacted with. If a customer clicks Affiliate A's link on Monday and Affiliate B's link on Thursday before purchasing on Friday, Affiliate A receives the commission. This model rewards affiliates who introduce new customers to your product.

Last-Touch Attribution — An attribution model that gives full credit to the last affiliate the customer interacted with before converting. Using the same example, Affiliate B would receive the commission. This model rewards affiliates who drive the final purchasing decision but can undervalue earlier touchpoints that initiated the customer relationship.

Multi-Touch Attribution — An attribution model that distributes credit across multiple affiliates or channels that contributed to a conversion. For example, credit might be split 40/20/40 between the first touch, middle touchpoints, and last touch. Multi-touch models are more accurate but significantly more complex to implement and harder for affiliates to understand.

Attribution Window (Lookback Window) — The maximum time period between a click and a conversion during which the affiliate can receive credit. If a visitor clicks an affiliate link but does not convert until after the attribution window closes, the affiliate does not earn a commission. Typical windows range from 30 to 90 days for SaaS products.

Click ID — A unique identifier assigned to each individual click on an affiliate link. The click ID connects the initial click event to the downstream conversion, forming the core of the attribution chain. Click IDs are typically stored in URL parameters and passed through to the merchant's backend during signup.

UTM Parameters — Tags added to URLs (e.g., ?utm_source=affiliate&utm_medium=blog&utm_campaign=launch) that track the source, medium, and campaign associated with a visit. While UTM parameters are standard in digital marketing analytics, they are not a substitute for proper affiliate tracking because they do not support commission calculation, fraud detection, or payout automation.

Deep Linking — The practice of creating affiliate links that point to a specific page on the merchant's website rather than the homepage. For example, linking directly to a pricing page, a specific feature page, or a blog post. Deep links typically convert better because they send visitors to the most relevant content for the affiliate's audience.

Sub-ID Tracking — A technique where affiliates append additional identifiers to their referral links to track which specific content, placement, or campaign generated each click. For example, ?ref=partner123&sub_id=blog-review-jan lets the affiliate see that their January blog review drove a particular conversion. Sub-IDs help affiliates optimize their promotion strategies.

CPA (Cost Per Action / Cost Per Acquisition) — A commission model where the affiliate earns a fixed fee for each qualifying action, regardless of the transaction amount. For example, $50 for every new paid subscriber. CPA is simple to understand and predict but does not reward affiliates for driving higher-value customers.

CPS (Cost Per Sale) — A commission model where the affiliate earns a percentage of each sale amount. For example, 20% of the first month's subscription fee. CPS aligns affiliate incentives with revenue — affiliates earn more when they drive higher-value transactions. This is the most common model in SaaS affiliate programs.

CPL (Cost Per Lead) — A commission model where the affiliate earns a fixed fee for each qualified lead, such as a trial signup, demo request, or email subscription. CPL works well when the merchant wants to build a pipeline rather than pay only for closed sales. The risk is that lead quality can vary significantly between affiliates.

Recurring Commission — A commission structure where the affiliate earns a percentage of the customer's subscription payment every billing cycle for as long as the customer remains active. For example, 20% of every monthly payment. Recurring commissions are the gold standard for SaaS affiliate programs because they incentivize affiliates to refer customers who will stick around long-term.

Lifetime Commission — A recurring commission that continues for the entire lifetime of the referred customer's subscription, with no expiration date. If the customer pays for five years, the affiliate earns commissions for five years. This is the most generous commission structure and attracts the highest-quality affiliates.

One-Time Bounty (Flat-Rate Bounty) — A single, fixed payment for each conversion, paid once regardless of the customer's future behavior. For example, $100 per new paid subscriber. One-time bounties are simpler to manage and create no long-term commission liability, but they do not incentivize affiliates to drive long-term retention.

Tiered Commission — A commission structure where the rate increases as an affiliate generates more conversions or revenue within a given period. For example, 15% commission for the first 10 referrals per month, 20% for 11-25, and 25% for 26+. Tiered commissions motivate top performers to drive even more volume.

Hybrid Commission — A commission structure that combines two or more models. For example, a $50 one-time bounty plus 10% recurring commission on each subscription payment. Hybrid models let merchants balance upfront affiliate motivation with long-term alignment.

Performance Bonus — An additional payment awarded to affiliates who exceed specific targets within a defined period. For example, a $500 bonus for generating 50+ conversions in a single month. Performance bonuses encourage affiliates to prioritize your program over competing offers during bonus periods.

Commission Rate — The percentage or fixed amount an affiliate earns per conversion. Typical SaaS commission rates range from 15% to 30% for recurring commissions and $20 to $200 for one-time bounties. The optimal rate balances affiliate attractiveness with your unit economics and customer lifetime value.

Affiliate Agreement (Terms of Service) — The legal contract between the merchant and the affiliate that defines the rules of the program. It covers commission rates, payment terms, acceptable promotion methods, trademark usage, disclosure requirements, termination conditions, and dispute resolution. A clear agreement protects both parties and sets expectations from the start.

Payout Threshold (Minimum Payout) — The minimum commission balance an affiliate must accumulate before receiving a payment. Common thresholds are $50 or $100. Thresholds exist to reduce the administrative cost of processing many small payments. If an affiliate's balance is below the threshold on a payout date, their earnings carry forward to the next period.

Hold Period (Pending Period) — The waiting period between when a commission is recorded and when it becomes eligible for payout. Hold periods typically range from 14 to 60 days and protect the merchant against refunds, chargebacks, and fraud. During the hold period, the commission remains in "pending" status and can be reversed if the underlying transaction is refunded.

Chargeback — A forced reversal of a payment initiated by the customer's bank or credit card company, usually because the customer disputes the charge. When a chargeback occurs on an affiliate-referred transaction, the associated commission is typically reversed. High chargeback rates from specific affiliates can indicate fraudulent or misleading promotion.

Clawback (Commission Reversal) — The process of reclaiming a commission that was already paid or approved when the underlying transaction is later refunded, charged back, or identified as fraudulent. Clawback policies should be clearly defined in the affiliate agreement. Automated tracking platforms handle clawbacks automatically when they receive refund webhooks.

EPC (Earnings Per Click) — A metric calculated by dividing total commissions earned by total clicks over a given period. EPC tells affiliates how much they can expect to earn per click they send. For example, if a program generated $1,000 in commissions from 5,000 clicks, the EPC is $0.20. Higher EPC programs attract better affiliates because they signal higher earning potential.

Conversion Rate — The percentage of clicks that result in a qualifying conversion. Calculated by dividing conversions by clicks and multiplying by 100. A 5% conversion rate means that 5 out of every 100 affiliate clicks result in a sale. Typical SaaS affiliate conversion rates range from 2% to 10%, depending on the product, price point, and affiliate quality.

Approval Rate — The percentage of affiliate applications that a merchant accepts into the program. Some programs approve all applicants automatically; others manually review each application. Lower approval rates indicate a more selective program, which can improve overall program quality but limits growth. Also refers to the percentage of pending commissions that are approved for payout.

Reversal Rate — The percentage of commissions that are reversed due to refunds, chargebacks, or fraud. A high reversal rate indicates problems with affiliate quality, misleading promotions, or product-market fit. Merchants should monitor reversal rates by individual affiliate to identify and address issues early.

Average Order Value (AOV) — The average transaction amount from affiliate-referred customers. For SaaS, this is typically the average subscription value at the time of initial purchase. Tracking AOV by affiliate helps identify which partners drive premium customers versus bargain shoppers.

Customer Lifetime Value (LTV / CLV) — The total revenue a customer generates over their entire relationship with your product. For SaaS, LTV is calculated as average monthly revenue per customer divided by monthly churn rate. Comparing LTV of affiliate-acquired customers to other channels validates whether your commission rates are sustainable and whether affiliates are driving quality customers.

Creative Assets (Marketing Materials) — The promotional resources a merchant provides to affiliates, including banner ads, email templates, product screenshots, logos, landing pages, and social media content. High-quality creative assets improve affiliate performance and ensure consistent brand representation across partner channels.

Webhook — An automated HTTP callback that sends real-time data from one system to another when a specific event occurs. In affiliate tracking, webhooks from payment processors like Stripe notify the tracking platform when a purchase, subscription renewal, upgrade, downgrade, or refund happens. Webhooks are the backbone of server-side affiliate tracking.

API (Application Programming Interface) — A set of defined endpoints that allow different software systems to communicate programmatically. Affiliate tracking platforms provide APIs to create affiliates, retrieve performance data, manage commissions, and automate program operations. A comprehensive API enables custom workflows and integrations with CRMs, email platforms, and internal tools.

SDK (Software Development Kit) — A package of tools, code libraries, and documentation that simplifies integration with a tracking platform. For affiliate tracking, an SDK typically handles referral link detection, visitor identification, and conversion reporting with a few lines of code. Icodrip's JavaScript SDK weighs under 2KB and requires minimal implementation effort.

Stripe Connect — Stripe's platform for facilitating payments between multiple parties. In affiliate programs, Stripe Connect Express enables automated affiliate payouts. The merchant transfers commission amounts directly to affiliates' connected Stripe accounts, and Stripe handles bank deposits, tax form generation, and international currency conversion.

OAuth — An authorization protocol that allows a third-party application to access a user's data without exposing their credentials. In affiliate tracking, OAuth is commonly used to connect payment processors (like Stripe) to the tracking platform securely. The merchant authorizes the tracking platform to receive webhook events and read transaction data without sharing API keys.

Idempotency — A property ensuring that processing the same event multiple times produces the same result as processing it once. In affiliate tracking, idempotent webhook handling prevents duplicate commissions if a payment processor sends the same event twice. The tracking platform checks the event ID before processing and skips duplicates.

Rate Limiting — A technique that restricts the number of API requests a client can make within a given time period. Affiliate tracking platforms use rate limiting to prevent abuse, ensure system stability, and protect against denial-of-service attacks. Typical limits are expressed as requests per minute or per hour.

Redirect (Tracking Redirect) — The process of routing a click through the tracking platform's server before sending the visitor to the merchant's website. When a visitor clicks an affiliate link, the tracking server records the click data and then redirects the browser to the destination URL. Fast redirects (under 50ms) are essential to avoid losing visitors to slow load times.

Affiliate Fraud — Any deceptive activity by an affiliate to generate illegitimate commissions. Common forms include click fraud, cookie stuffing, self-referrals, and fake leads. Fraud prevention is critical because it protects your budget, maintains program integrity, and ensures legitimate affiliates are fairly compensated.

Click Flooding (Click Spam) — A fraud technique where an affiliate generates massive volumes of fake clicks in hopes that some will be randomly matched to organic conversions through last-touch attribution. The affiliate fires thousands of click events from real users (often via hidden iframes or JavaScript), creating false referral records that may receive credit for purchases the affiliate did not actually influence.

Cookie Stuffing (Cookie Dropping) — A fraud technique where an affiliate places tracking cookies on a visitor's browser without the visitor knowingly clicking an affiliate link. This is typically done through hidden iframes, pop-unders, or image tags on unrelated websites. When the visitor later purchases from the merchant organically, the fraudulent cookie causes the affiliate to receive credit for a conversion they did not drive.

Self-Referral — When an affiliate uses their own referral link to purchase a product and earn a commission on their own transaction. Most affiliate agreements prohibit self-referrals. Tracking platforms detect self-referrals by comparing the affiliate's account information (email, IP address, payment details) with the converting customer's data.

Click Injection — A mobile-specific fraud technique where a malicious app detects when a user is about to complete an app install and fires a fake click just before the installation finishes. This allows the fraudster to claim credit for an organic install. Click injection is identified by analyzing the time between the click and the conversion — suspiciously short intervals indicate fraud.

Fraud Detection — The systems and processes used to identify and prevent illegitimate affiliate activity. Automated fraud detection analyzes click patterns, conversion timing, IP addresses, device fingerprints, and behavioral signals to flag suspicious activity. Effective fraud detection is essential for protecting program economics and maintaining affiliate trust.

IP Filtering — A fraud prevention technique that blocks or flags clicks from specific IP addresses or ranges known to be associated with bot traffic, data centers, or previous fraudulent activity. IP filtering is a basic but effective first line of defense against automated click fraud.

Conversion Cap — A limit on the number of conversions a single affiliate can generate within a given period. Conversion caps protect merchants from runaway commission obligations and can help detect fraud — an affiliate suddenly generating far more conversions than expected may warrant investigation.

Affiliate Tier — A classification system that groups affiliates based on their performance level. Common tiers include bronze, silver, gold, and platinum. Higher tiers unlock better commission rates, priority support, exclusive offers, and other perks. Tiered structures incentivize affiliates to grow their performance and reward loyalty.

Two-Tier Affiliate Program — A program structure where affiliates earn commissions not only on their own referrals but also on the sales generated by affiliates they recruit into the program. The first-tier affiliate receives their standard commission, and the recruiting affiliate receives a smaller second-tier commission. This structure encourages existing affiliates to recruit new partners.

Super Affiliate — An affiliate who generates significantly higher volume and revenue than average partners. Super affiliates typically have large audiences, established authority in their niche, and sophisticated marketing operations. They often negotiate custom commission rates and receive dedicated support from the merchant.

Affiliate Recruitment — The process of finding, vetting, and onboarding new affiliates into your program. Recruitment channels include your existing customer base, affiliate directories, competitor programs, social media outreach, content creators in your niche, and your own signup page. Quality recruitment is more valuable than quantity.

Landing Page — The specific web page a visitor arrives at after clicking an affiliate link. Optimized landing pages that match the affiliate's promotional messaging convert significantly better than generic homepages. Some programs create dedicated affiliate landing pages or allow affiliates to deep link to specific product pages.

Split Testing (A/B Testing) — The practice of testing different versions of landing pages, commission structures, or creative assets to determine which variation performs better. In affiliate programs, split testing helps optimize conversion rates for affiliate traffic and identify the most effective commission structures for recruitment and retention.

Promotional Method — The channel or technique an affiliate uses to promote the merchant's product. Common methods include blog content, email marketing, social media posts, YouTube reviews, podcast mentions, paid advertising, and comparison websites. Programs typically define which methods are permitted in the affiliate agreement.

Disclosure (FTC Disclosure) — A legal requirement for affiliates to clearly communicate their financial relationship with the merchant when promoting products. In the United States, the FTC requires affiliates to disclose that they may earn a commission from purchases made through their links. Proper disclosure builds trust with the audience and keeps both the affiliate and merchant in legal compliance.

Exclusivity — A clause in an affiliate agreement that restricts the affiliate from promoting competing products. Exclusive affiliates commit to promoting only your product within a specific category, typically in exchange for higher commission rates or guaranteed minimum payments. Exclusivity is rare in SaaS affiliate programs but common in high-value partnerships.

Coupon Affiliate — An affiliate who drives conversions primarily by distributing discount codes through coupon websites, browser extensions, or deal newsletters. While coupon affiliates can generate high volume, they often intercept customers who would have purchased anyway, inflating commission costs without driving incremental revenue. Many SaaS programs restrict or monitor coupon affiliates carefully.

Content Affiliate — An affiliate who promotes products through original content such as blog posts, reviews, tutorials, comparison articles, or video content. Content affiliates typically drive higher-quality traffic with stronger purchase intent and better customer lifetime value compared to coupon or deal affiliates.

Influencer Affiliate — A social media creator or thought leader who promotes products to their audience in exchange for affiliate commissions. Influencer affiliates leverage their personal brand and audience trust. They are particularly effective for SaaS products that require explanation or demonstration, as their audience values their recommendations.

Affiliate Link Cloaking — The practice of disguising long or complex affiliate URLs behind shorter, cleaner links, typically using a redirect on the affiliate's own domain. For example, turning app.com/?ref=abc123&campaign=review into partner.com/go/app. Link cloaking improves click-through rates and protects affiliate IDs from being stripped by browser extensions.

Program Terms — The complete set of rules, conditions, and policies that govern an affiliate program. Program terms include commission structures, payment schedules, acceptable promotional methods, trademark guidelines, cookie duration, attribution model, and grounds for termination. Clear program terms reduce disputes and set expectations for all parties.