Tracking refers to the way that a program tracks referred sales, leads or clicks. The most common are by using a unique web address (URL) for each affiliate, or by embedding an affiliate ID number into the link which is processed by the merchant’s software. Some programs also use cookies to track sales.

Cookies are small files stored on the visitor’s computer that record information that is of interest to the merchant site. Despite concerns some people have, cookies are not dangerous, and can not be used to steal names, email addresses, phone or credit card number. Used with affiliate programs, cookies have two main functions:
a) to track what a visitor purchases and,
b) to track which affiliate made the referral

Be wary of programs which ONLY use cookies since they have many inherent limitations: they can be turned off by the visitor, they expire after a certain date or time, and they can be deleted off the visitors computer. Most programs use either unique URLs or affiliate ID numbers in conjunction with cookies to track properly. Cookies can then be used to give the affiliate credit at a later time of purchase, even if the visitor doesn’t click-through from the affiliate’s site again.

Many networks have arisen to better facilitate the pay-per-click program concept. Most pay-per-click programs are part of a network where the network acts as middleman between the actual advertisers and the affiliates which run the ads. For this, the network takes a cut of the revenues. Larger networks include: ValueClick, Burstnet, Doubleclick.

Similar to banner networks, an increasing number of companies have been started to help merchant’s facilitate affiliate programs. Most act as consultants and software providers to merchants, allowing the merchant to cost-effectively outsource their affiliate program operations. For affiliates, the networks often offer simplified registration, standardized commission tracking and reporting, and even consolidated check payments. Some of
the leading third-party administrators include: BeFree, LinkShare, CommissionJunction, Shareasale and Clickbank.