How to start an affiliate program in 9 steps for your online store

Running an online store today isn’t just about having great products. Customer acquisition costs are rising, and building organic traffic takes time.

That’s why many ecommerce brands are turning to affiliate marketing; a channel where partners promote your products and get paid only when results happen.

This article will provide step by step guidance to set up your affiliate program.

What is an affiliate marketing program?

An affiliate marketing program is a performance-based partnership model where a business pays affiliates (third-party partners) a commission for driving measurable results, usually sales, leads, or signups.

Before launching an affiliate marketing program, you have to know how it works.

First, the affiliates share their unique affiliate link on their website or channels. By clicking the affiliate link, the customer may decide to make a purchase. If the customer purchases, then the affiliate earns the promised commission. You will learn more about each detail in the steps below.

How to start an affiliate marketing program in 9 steps

1. Set goals for your affiliate marketing program

Setting goals gives you a clear direction. Without clear goals, an affiliate program rarely succeeds. Identify the metrics you want to improve, such as:

• Customer acquisition cost (CAC)

• Average order value (AOV)

• Gross margin

• Customer lifetime value (CLV)

For example, if your average order value is $5,000 and your gross margin is 40%, you know how much commission you can realistically afford. Instead of having vague goals like "grow revenue," make it specific: “Generate 15% of total monthly revenue from affiliates within 12 months.”

2. Select an affiliate program

Once your goals are clear, the next step is choosing the right platform. To run an affiliate program, you need to choose which option fits your business best. You can either join an affiliate network or use affiliate software. Some of the popular affiliate networks are:

• ShareASale

• CJ Affiliate

• ClickBank

Popular affiliate marketing software includes:

• Refersion

• Impact

When choosing a platform, instead of looking only at pricing, try looking at features such as:

• Tracking accuracy

• Fraud detection

• Commission automation

• Payment processing

3. Decide what product to promote

To decide what products to promote, start with products that sell the most in your online store, products with strong customer reviews, and products with high margin SKUs.

If you’re selling physical goods with 10% margins, you can't offer 20% commission. Digital products or subscription models usually have higher payouts as there are no inventory costs.

4. Find the right affiliates

When running an affiliate program, you need to find affiliates who can market your products effectively.

Pro tip: Instead of chasing large influencers, focus on niche bloggers with a highly engaged audience, because they often outperform a general content creator with ten times the followers.

Look for:

• Bloggers ranking for keywords in your niche.

• YouTube reviewers discussing similar products.

• Newsletter publishers serving your target audience.

Reach out to the affiliates and explain why your product fits their audience as affiliate partnerships work best when they feel like collaborations and not transactions.

5. Set up affiliate program policies and guideline 

Without guidelines, you risk brand misuse or misleading claims. And once something is published online, it’s difficult to reverse it. So keep your policies transparent and easy to access. Include the following in your guidelines:

• Allowed promotional channels

• Paid ad restrictions

• Trademark bidding rules

• Coupon usage policies

• Disclosure requirements

6. Set up affiliate commissions

Physical ecommerce products typically offer between 5% and 20%, depending on margins. Digital products can range from 30% to even 50% because production costs are lower. Don’t copy competitor rates blindly when setting up commissions. Instead:

• Calculate your gross margin.

• Consider your average order value.

• Estimate long-term customer value.

You can also introduce tiered commissions. Performance-based tiers encourage affiliates to scale their efforts. For example, price them:

• 10% base rate

• 15% after 50 monthly sales

• 20% after 100 monthly sales

7. Set up cookie duration

Cookie duration in an affiliate program is the amount of time a tracking cookie stays in a visitor’s browser after they click your affiliate link. If the visitor buys within that time, you get the commission. If they buy after the cookie expires, you don’t.

For high-ticket affiliate programs, a longer cookie duration (30–90 days) makes your program more attractive. Think about your customer journey.

How long does it typically take for someone to move from awareness to purchase? Set your cookie duration accordingly.

8. Manage your affiliates

Your work doesn't end after you launch your affiliate program; you have to manage and track the affiliates. Review monthly performance with metrics such as:

• Revenue per affiliate

• Conversion rates

• Refund rates

• Traffic sources

You’ll likely discover that 10% of affiliates generate 80% of revenue. Focus on nurturing top performers and offer early product access, share exclusive campaigns, and recognize their contributions.

9. Scale your affiliate program

Once your affiliate program is stable, you can expand. That may mean:

• Joining a larger affiliate network.

• Increasing commission tiers.

• Launching seasonal promotions.

• Recruiting internationally.

Many mature ecommerce brands aim for affiliates to contribute 10–20% of total revenue. It doesn’t happen overnight, but with consistency, it becomes a powerful channel.

Closing perspective

Starting an affiliate marketing program for your online store is less about technology and more about structure. It’s partnership-driven growth, and when managed properly, it reduces your dependence on paid advertising while expanding your online store's reach organically.

To create and maintain an online store, you can choose Zoho Commerce, an ecommerce platform that lets you create an online storefront with no coding.

If you’re considering launching an affiliate program for your online store and want to refine your strategy before committing, feel free to share your goals and challenges.