---
canonical: https://flawlessmlm.com/en/faq/what-are-affiliate-programs
title: What Are Affiliate Programs?
description: What Are Affiliate Programs? Affiliate programs are structured referral partnerships where companies pay independent marketers commissions for referring customers.
lang: en
updated: '2026-08-19'
url: https://flawlessmlm.com/en/faq/what-are-affiliate-programs
last_updated: '2026-08-19'
language: en
type: faq
keywords: ''
published_date: '2026-08-06'
---

# What Are Affiliate Programs?

**Updated:** August 2026

Oleksandr Honcharov, CEO at FlawlessMLM 

Affiliate programs are structured referral partnerships where companies pay independent marketers commissions for referring customers. Understanding what are affiliate programs means covering the range of programs across categories: retail, SaaS, digital products, financial services, and MLM compensation plans.

**In short:** affiliate programs are performance-based marketing systems where companies pay commissions to affiliates who refer converting customers. Types include single-tier consumer programs (Amazon Associates, ShareASale merchants), recurring SaaS programs (Shopify Partner, HubSpot), digital info product programs (ClickBank), CPA offers (MaxBounty, PeerFly), and multi-level compensation plans in MLM (Amway, doTERRA).

Single-tier consumer affiliate programs pay commissions per completed purchase. Amazon Associates, most ShareASale merchants, and direct brand programs fall in this category. Commissions typically run 1-30% depending on category.

Recurring SaaS affiliate programs pay ongoing commissions as long as the referred customer maintains a subscription. Shopify Partner, HubSpot Solutions Partner, ConvertKit, ClickFunnels, Kajabi, and Semrush all pay 20-40% recurring on subscription revenue.

Digital info product affiliate programs (mostly ClickBank) pay high percentage commissions (30-75%) on courses, ebooks, and coaching programs. Product quality varies widely.

CPA (cost per action) affiliate programs pay for defined actions like signups, free trials, or lead form completions rather than purchases. MaxBounty, PeerFly, and ClickDealer specialize in these.

MLM compensation plans are effectively multi-level affiliate programs. Distributors earn on personal sales plus commissions across a downline. Amway, doTERRA, Herbalife, Young Living, and others operate at scale within FTC guidelines.

**Common mistakes to avoid**

*   **Treating all affiliate programs identically** — commission structures, cookie durations, and payment terms vary enormously.
*   **Missing category distinctions** — single-tier, recurring, CPA, and MLM programs work very differently.
*   **Ignoring FTC disclosure rules** — apply to all affiliate program types.
*   **Signing up for too many programs at once** — 3-5 focused programs beat 20 scattered ones.
*   **Confusing MLM pyramid concerns with standard affiliate programs** — legitimate MLM operates within FTC guidance; standard affiliate programs don't face the same regulatory tests.

**Conclusion:** what are affiliate programs — performance-based marketing systems across multiple types: single-tier consumer, recurring SaaS, digital info products, CPA, and multi-level MLM compensation plans. Choose the type matching your niche and audience.

**Related questions**

**How many types of affiliate programs are there?**

Five main types: single-tier consumer, recurring SaaS, digital info products, CPA (pay per action), and multi-level MLM compensation plans.

**Are affiliate programs the same across countries?**

Similar structure, different regulations. Cookie laws (GDPR in Europe), disclosure requirements (FTC in US), and tax reporting all vary by country.

**What are the biggest affiliate programs by size?**

Amazon Associates (largest by affiliate count), ClickBank (largest digital product marketplace), and top MLM compensation plans (Amway at $8B+ revenue) all operate at massive scale.

**Do affiliate programs pay similarly to MLM?**

Different structures. Affiliate programs typically pay one-time or recurring commissions per referral. MLM pays multi-level commissions across a downline.

---
Source: [FlawlessMLM FAQ](https://flawlessmlm.com/en/faq/what-are-affiliate-programs)