Affiliate Programme Basics
An affiliate programme is a performance marketing arrangement where third parties (affiliates) promote your products in exchange for a commission on sales they generate. Each affiliate gets a unique tracking link. When a customer clicks that link and makes a purchase, the affiliate earns their commission.
Affiliates can be bloggers, content creators, comparison sites, deal aggregators, or loyal customers. The right mix depends on your product category and target audience.
Choosing an App
Shopify does not offer a native affiliate programme feature. The leading apps are Refersion, UpPromote, and Tapfiliate. Refersion is the most powerful with the strongest network of affiliates, but starts at $119/month. UpPromote is more affordable at £30-£50/month and suitable for most brands starting out.
Setting Commission Rates
Commission rates in the UK ecommerce market typically range from 5-20% depending on the category. Fashion and beauty tend to pay 10-15%. Electronics and high-ticket items pay lower percentage rates (3-8%) but higher absolute values.
Consider whether to offer flat-rate commissions (same percentage for all affiliates) or tiered commissions (higher percentage for top performers). Tiered commissions incentivise volume and reward your best affiliates.
Recruiting Affiliates
Start with your existing customers: email your customer list and invite loyal buyers to become affiliates. These affiliates already love your products and can advocate authentically. Offer them a straightforward sign-up link and a welcome package explaining how to share their link.
Reach out to relevant bloggers, Instagram accounts, and YouTube channels in your niche. Research who already covers products like yours and offer them an affiliate arrangement. A personalised pitch with a free product sample converts much better than a mass email.
Managing Payouts
Most affiliate apps handle payout management automatically via PayPal, bank transfer, or store credit. Set a minimum payout threshold (£25-£50) to avoid processing costs on tiny commissions. Pay monthly to establish a predictable schedule.
Keep records of all affiliate payouts for tax purposes. Affiliates earning above £1,000/year from you in the UK may need to declare this income, which is their responsibility, but clear records protect you as the merchant.
Tracking Performance
Monitor these key metrics: number of active affiliates, total clicks, conversion rate from affiliate links, revenue generated, and effective cost per acquisition. Compare your affiliate CPA against other acquisition channels to assess value.
Identify your top 20% of affiliates who generate 80% of revenue. Invest time in these relationships: offer them exclusive discount codes, early access to new products, and higher commissions.
Compliance
UK ASA (Advertising Standards Authority) rules require affiliates to disclose when content is paid promotion. Ensure your affiliate agreement requires affiliates to label sponsored content clearly. Failure to disclose is an ASA violation that can generate bad press for your brand.
