What is affiliate marketing and how does it work in practice?

What is affiliate marketing and how does it work in practice

Have you ever wondered whether you can make money online on your own schedule, without creating a product of your own? You've probably seen influencers, bloggers, or YouTubers recommend a product and drop a link in the description. Behind that simple move is one of the most powerful strategies in digital marketing: affiliate marketing.

It can sound confusing at first, but at its core it's a business model where everyone wins. In this guide, we explain what affiliate marketing is, how it works day to day, and how you can start to monetize your audience with Lomadee. If you want to compare the different kinds of programs you can join, see our guide on what an affiliate program is and how to choose one.

What is affiliate marketing?

In its simplest form, affiliate marketing is a performance-based partnership.

Here's how it works:

  • A company (the advertiser, such as an electronics store or a cosmetics brand) has products to sell.
  • You (the affiliate) sign up with an affiliate network and pick products to promote.
  • You get a unique tracking link, called an affiliate link.
  • Whenever someone buys through your link, you earn a commission on that sale.

It's a pay-for-performance model: the company only pays a commission when a real sale happens. That removes the risk of spending money on ads that don't deliver and keeps the model sustainable for everyone involved.

How do affiliate commissions work?

The magic behind affiliate marketing is tracking technology. Affiliate networks like Lomadee manage this process securely and transparently.

When you generate your affiliate link, it's automatically tagged so that a cookie can be set. A cookie is a small text file saved in the shopper's browser when they click your link. It records that the visit came from your promotion channel.

Even if the person doesn't buy right away, the cookie can last for days or even months (the "cookie window"). If the shopper comes back and buys within that window, the sale is attributed to you and you earn the commission.

Commission models vary. The most common are:

  • Cost per acquisition (CPA): you earn a percentage or a fixed amount for every completed sale.
  • Cost per lead (CPL): you earn for each qualified lead you generate (for example, a completed form).

Most programs use CPA, which is the safest and most transparent model for both sides.

Affiliate marketing in practice: everyday examples

The best way to understand how affiliates work is to look at a few real-world scenarios:

Scenario 1: The beauty influencer

  • A beauty creator films a quick video of her skincare routine.
  • In the video, she highlights a face cream sold on the brand's online store.
  • In her Stories, she shares a link that goes straight to the product page.
  • Every time someone clicks and buys, she earns her commission.

Scenario 2: The tech blog

  • A tech blogger writes an in-depth review of a new pair of headphones.
  • Throughout the article, he adds an affiliate link that sends readers to the store selling them.
  • He earns a commission on every purchase.

Scenario 3: The recipe YouTube channel

  • A YouTube creator posts a video showing how to bake a cake.
  • In the description, he lists every ingredient and adds affiliate links to the mixer, the oven, and the kitchen tools he used.
  • It's a way to make money online while giving the audience real value and convenience.

Where to start: Lomadee's role

Now that you understand the concept, the next question is where to start. Reaching out to every company one by one to negotiate a partnership is slow and impractical. That's why affiliate networks matter — and why it's important to choose one that is reliable and delivers results.

That's where Lomadee comes in. Instead of juggling dozens of partnerships and links, you get everything in one place. With free signup, you get access to campaigns from major Brazilian brands, from fashion to electronics, and you choose the ones that fit your audience.

Lomadee gives you the tools to create your links, track your performance in real time, and receive your commissions securely. It's a smart, safe, and straightforward way to become a successful affiliate and start earning online.

Join the Lomadee affiliate program for free and take your first step toward monetizing your content with affiliate marketing.

Frequently asked questions

Lomadee is a creator commerce platform that connects creators and affiliates to Brazil's biggest brands. With over 1 million registered affiliates, R$10 billion in GMV generated, and R$5 million paid in commissions, we are the country's largest performance and audience-monetization ecosystem.