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Key takeaways
- An affiliate program pays partners a commission when they send you a sale. You only pay when a sale completes, not per click or impression.
- Starting one takes seven steps: check the fit, set goals, choose a platform, set up tracking, set commissions, write your program description, and recruit affiliates.
- On Commission Factory, technology plans start from AU$349 a month, plus a tracking fee on each approved sale.
- Expect to spend between one and eight hours a week on your program, depending on how much support you choose.
To start an affiliate program in Australia, you partner with affiliates such as content creators, cashback sites, and offer and retargeting partners. You pay them a commission only when they drive a sale. The setup follows seven clear steps, and you can run it yourself or have our team guide you through it.
What is an affiliate program?
An affiliate program is a performance-based partnership. Affiliates promote your brand, and you pay them a commission only when their referral turns into a confirmed sale.
Because you pay based on results, your marketing cost tracks your revenue.
A platform like Commission Factory sits in the middle. It tracks each sale, credits it to the right affiliate, and handles commission payments for you.
How do I start an affiliate program in Australia?
Follow these seven steps. Each one builds on the last, so work through them in order.
- Check affiliate marketing suits your brand. Ask whether affiliates would want to promote your products, and whether your competitors already run programs.
- Set your goals and KPIs. Decide what success looks like, such as more sales, a higher average order value, or more new customers.
- Choose an affiliate platform. Networks such as Commission Factory give you tracking, reporting, payments, and access to affiliates in one place.
- Set up conversion tracking. Connect your store so every affiliate sale is recorded and credited correctly.
- Set your commission model and rates. Choose how you'll reward affiliates and what you'll pay.
- Write your program description and upload creative. Tell affiliates why they should promote you, and give them links and banners.
- Recruit and support your affiliates. Approve the right partners, welcome them, and keep in touch.
The sections below explain each step in more detail.
Step 1: Check if affiliate marketing suits your brand
Start with your product. Affiliates promote brands that their audience will buy from, so think about who already talks about your category.
Look at your competitors, too. If they run affiliate programs, affiliates in your space already know how to sell products like yours.
Your commission doesn't have to be a percentage of each sale. If you sell services or high-value products, you can pay a fixed amount per lead instead.
Step 2: Set your goals and KPIs
Clear goals help you choose the right affiliates and commission structure. Pick one or two to focus on first.
- More sales: track revenue and number of transactions.
- Higher order value: track average order value (AOV).
- New customers: track the share of sales from first-time buyers.
- Brand awareness: track clicks and the number of active affiliates.
Step 3: Choose an affiliate platform
For a first program, an affiliate network is the simplest way to start. It handles the technology, so you can focus on partnerships.
Look for a platform that offers:
- Reliable tracking and real-time reporting.
- Automated billing and commission payments.
- Access to a large pool of affiliates in your market.
- The level of support you need, from self-managed to fully managed.
Commission Factory gives you access to more than 50,000 verified affiliates, and more than 800 brands run their programs on the platform.
Step 4: Set up conversion tracking
Affiliate tracking records each sale and credits it to the affiliate who sent it. Without it, you can't pay commissions accurately.
Commission Factory supports Shopify, WooCommerce, Magento, BigCommerce, and Google Tag Manager out of the box, with no dev sprint required. Salesforce Commerce Cloud, Tealium, and Segment are also supported.
You can choose server-to-server (S2S) tracking, a client-side pixel, or a hybrid of both. We recommend S2S because it holds up better when browser cookies are lost. Learn more about affiliate tracking.
Step 5: Set your commission model and rates
Your commission model decides what affiliates are paid for. There are three common types.
| Model | What you pay for | Best for |
|---|---|---|
| Cost per action (CPA) | A percentage of each completed sale | Most ecommerce brands |
| Cost per lead (CPL) | A fixed amount for each valid lead | Services, finance, and high-value products |
| Cost per click (CPC) | A set amount for each click | Traffic and awareness goals |
You control your rates. You can set different rates by product category, SKU, customer type, partner tier, or individual partner.
For example, you might pay a higher rate for new customers than for returning ones. That rewards affiliates for the growth you want most.
Commissions are held for a validation period, typically 30 days, before payout. During that time, you can decline transactions involving returns, cancellations, or fraud. Learn more about commission rates here.
Step 6: Write your program description and upload creative
Your program description is your pitch to affiliates. Tell them clearly why your brand is worth promoting.
Mention anything that helps them convert, such as:
- A strong average order value.
- Exclusive coupon codes or offers.
- Free shipping or gifts with purchase.
- A product data feed they can use to build content.
Then upload your creative, such as banners and tracking links, so affiliates can start promoting straight away.
Step 7: Recruit and support your affiliates
Every affiliate who applies needs your approval. You can also restrict certain promotion methods, such as bidding on your brand name in paid search.
Aim for a mix of affiliate types, such as content creators, cashback and loyalty sites, and offer and voucher affiliates. Relying on one type puts too much of your program in one place.
Once affiliates join, send a welcome email with their links and creative. Keep in touch with regular updates on offers and sales periods, and watch which partners drive results. Read our tips for recruiting affiliates.
How much does it cost to run an affiliate program?
Running an affiliate program on Commission Factory costs a monthly platform fee, a tracking fee on each approved sale, and the commissions you choose to pay affiliates.
| Technology plan | Monthly fee | Tracking fee per approved sale |
|---|---|---|
| Core | AU$349 | 2.00% |
| Grow | AU$999 | 1.75% |
| Elevate | Custom pricing | Agreed as part of your plan |
Technology plans have a 12-month minimum term and are billed monthly. If you'd like hands-on help, an optional service plan adds a management fee.
See the full breakdown on our technology plans and service plans pages.
How long does it take to set up an affiliate program?
If you use a supported platform such as Shopify, you can get active in days. Setup covers your account and program settings, tracking integration, and creative upload.
How quickly you see results depends on how fast you recruit and activate affiliates.
Ongoing time depends on how much support you choose:
| Service plan | Who runs it | Your time each week |
|---|---|---|
| Support | You, with support from our team | Six to eight hours |
| Lite | Co-managed | Two to six hours |
| Plus | Co-managed | One to two hours |
| Pro | Managed by a dedicated account manager | One to two hours |
If you'd like a guided setup, a managed plan means an account manager runs setup and a pre-launch review with you.
Is affiliate marketing worth it for a small business?
Affiliate marketing can suit a small business because you pay only when a sale completes. That makes your cost per sale predictable from day one.
Commission Factory works with brands of every size, from sole traders with under AU$1M in turnover to brands spending six figures a year on affiliates. Plans scale as your program grows.
Before you start, check your margins can cover your commission rate plus platform fees.
Want to earn as an affiliate instead?
If you create content, grow an audience, or run a website, you can earn commission by promoting brands you like. Affiliate membership is free, and you earn commission on the approved sales you drive.
Learn about affiliate membership or join as an affiliate.
Frequently asked questions
How do I start an affiliate program for my business in Australia?
Check affiliate marketing suits your brand, set goals, and choose an affiliate platform. Then set up tracking, set your commission rates, write your program description, and recruit affiliates.
How much does it cost to run an affiliate program?
On Commission Factory, you pay a monthly platform fee from AU$349, a tracking fee of 1.75% to 2.00% on approved sales, and the commissions you set.
How long does it take to set up an affiliate program?
With a supported platform such as Shopify, WooCommerce, or BigCommerce, you can get sales active in days. Results depend on how quickly you recruit active affiliates.
Do I pay affiliates for clicks?
Not on a standard CPA program. You only pay when a sale completes, not per click or per impression.
Who decides the commission rate?
You do. Rates are set in your program settings, and you can vary them by product, customer type, or partner.
Do I need a developer to set up tracking?
Usually not. Shopify, WooCommerce, Magento, BigCommerce, and Google Tag Manager are supported out of the box, with no dev sprint required.
Start your affiliate program
You now know the seven steps, what it costs, and how much time to plan for. The next step is choosing the plan that fits your business.
Compare technology plans, see how we help brands on our advertisers page, or register as an advertiser to get started.