Generally speaking, affiliate marketing is quite straightforward. When a third-party affiliate signs up, the sponsor brand provides the third-party affiliate with a “referral code” or “referral link.” When customers click on the link, they go to the brand’s e-commerce site. However, clicking on the referral link signals the e-commerce site where the customer came from.
In some instances, affiliates get a small commission (usually pennies) per click. Other times, affiliates get no compensation for clicks, only for sales. Referral or promo codes work the same way. When a customer enters a promo code, they unlock a special offer. The affiliate gets their commission thanks to the sale.