How Affiliate Sites Actually Work: What Marketers and Users Should Know
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Affiliate marketing is a common way for websites to make money. Provided the partnership is strategic and benefits both sides, it’s a win for everyone. Here’s a deeper look at how affiliate marketing has grown and changed, the technical aspects, and how to shape the content. That’s followed by a case study and the importance for both marketers and consumers.
What Affiliate Marketing Really Means Today
Affiliate marketing has been around since the late 1980s. It started with banner ads and tracked links. The initial purpose of affiliate marketing was straightforward: create a system where affiliates earned commissions for generating sales or leads. It was a low-cost marketing avenue for merchants at a time when advertising space was at peak prices. These banner ads existed mostly on sales sites like Amazon.com, which was already seeing a lot of traffic.
The early 2000s saw the rise of affiliate networks like Rakuten Marketing and Commission Junction (later renamed to CJ Affiliate). Online organizations offered businesses and affiliates a streamlined way to track their sales and commissions. Affiliate links were no longer exclusive to big websites. Niche sites—like fashion, travel, finance, and iGaming—and blogs became the new source of affiliate links.
From Blog Links to Global Networks
The affiliate business grew in the late 2000s. While casual bloggers captured the market for the bulk of the decade, by the end, large-scale affiliate platforms emerged, generating many more opportunities for clicks. Here are three examples:
- Comparison sites like Finder.com which compare products and services across categories like retail, telecoms, finance, and insurance.
- Media conglomerates like Hearst Corporation incorporate affiliate marketing by promoting products through all its digital content.
- Dedicated review aggregators like TrustPilot offer a unique offering where users review businesses and affiliate marketing links consumers to the merchant sites mentioned.
Why It’s More Than Just “Passive Income”
Even though many review affiliate marketing as “set and forget” and wait for the clicks to roll in, that’s not the case. Affiliate links require careful management and ongoing maintenance. For example, the ones that aren’t driving business need to be removed or amended. There’s a ton of competition in the space, so links need to be high-quality, engaging, and optimized for SEO as well as they can.
Then there are regulations to be met. Your money, your life (YMYL) sites like health and finance need to be very careful about what they state. If an affiliate link makes a false or incorrect claim, this could lead to serious issues for the hosting site. Likewise, with the iGaming sector, there are strict rules about what can be promoted, to whom, and in what regions.
The Tech Behind the Links
Affiliate marketing is more than just clicking on a link. There are things going on behind the scenes to ensure the site earns their money. Here’s how it all works.
Cookie Tracking, Link IDs, and Attribution Windows
How does an affiliate make their money from clicks? That’s where the behind-the-scenes tech comes in. We’ve all heard of cookies and usually just click “accept all,” but do we really know what we’re accepting?
In the affiliate market game, when a user clicks an affiliate link, a small piece of data (yes, the cookie) is placed on their device. This cookie stores vital information like the affiliate’s unique ID and the time of the click. What this does for the affiliate is that it tags the user’s journey from its site to the merchant’s site. Just going to the site isn’t enough for the affiliate to earn their money, though. The user needs to purchase or sign up for the commission to be earned, and this may not happen on the first click.
That’s where the cookie comes in. At any time during the attribution window (the specific timeframe promised to the affiliate, mostly 30 days), when the user goes back to the merchant site and completes the transaction, the affiliate still earns its commission.
CPL, CPA, and Hybrid Revenue Models
There are three primary ways an affiliate can earn money when a user clicks on a link:
- Cost Per Lead (CPL): When a user completes a standard action like filling out a form, signing up for an email subscription, or registering for an account.
- Cost Per Acquisition (CPA): When the user buys a product or subscribes to a service.
- Hybrid Models: A small upfront payment for a lead plus a percentage of the ongoing revenue from the customer’s lifetime value.
How Affiliate Content Gets Shaped
Affiliate marketing appears to the consumer as straightforward clickable links. However, if the links don’t meet specific criteria, marketers may not get the clicks they’re aiming for. Here’s how to get the anchor text correct.
Commercial Incentives vs User Intent
The affiliate business is all about making money. The site that hosts the affiliate links earns a commission for every click. It’s only natural then that a site may consider favoring high-value links over what’s actually good for the user.
Here’s an example of what a finance comparison site may do. Credit union loans are known for their competitive interest rates and benefit the customer. On the other hand, payday loans have incredibly high interest rates and can land the borrower in hot water if they’re not paid back in time. A finance comparison site may list both options; however, the payday loans site offers a higher commission per affiliate click, so the finance site may be inclined to place that option at the top of the page.
Signs of Bias or Pay-to-Play Reviews
There are two red flags to beware of before clicking on an affiliate link: the first is bias. If something like “the best,” “the most downloaded,” or “don’t look anywhere else” is stated, it could show that these links are being overly favored in an attempt to get more clicks.
The other is irrelevant links. Have you ever asked Google a question only to be directed to an article that doesn’t really answer your question but is click-heavy? The most recent Google algorithms are cracking down on this type of content, but they’re still out there. They’re known as clickbait or pay-to-play reviews. Their entire purpose is to get the reader to click on the affiliate links. Savvy browsers can spot them a mile away, and in the end, they’re doing the entire industry a disservice.
A Closer Look: NzCasino and the iGaming Affiliate Model
When regulations come into play, that changes the game for the affiliate marketer. To show how this works in practice, let’s look at a regulated market: iGaming.
How Gambling Sites Use Affiliates to Grow Legally
The New Zealand gambling area is tightly regulated. In June 2025, the New Zealand government introduced the Online Casino Gambling Bill. By 2026, the bill will allow up to 15 authorized online casino operators to service the New Zealand market. For players looking for legitimacy, affiliates act as intermediaries, guiding them toward these legally approved platforms.
What NzCasino Does to Build Trust in NZ
NZCasino is a comparison site that introduces players to available online casinos in their region. Filters include top-rated sites, new casinos, bonus offers, free spins, and payment options. The site is respected as it offers clear, transparent information, and vets all the online casinos that it features. Bonus offers are detailed with pros and cons, delivering unbiased information for the potential player. To further build authority, NZCasino offers players guides and resources on responsible gambling.
Why Players Still Click—Transparency and Curation
While many people understand that affiliate links generate commission, they still click on them. Why? People are busy, and with so many choices, it’s not easy to make savvy ones alone. In the iGaming arena where legislation is so important, a trusted site like NZCasino takes the hard work out of the decision. Knowing that the site earns a commission for pointing a user in the right direction isn’t a deterrent.
Why It Matters for Marketers and Consumers
Marketers need to get the affiliate marketing links correct, so consumers click on something that meets a need. If the system works properly, it’s mutually beneficial for everyone.
Knowing the System Helps You Use It Better
Affiliate marketing could be viewed as a double-edged sword; there are benefits and limitations. In the case of the casino comparison site, where regulation is fierce, users need to be confident that even the affiliate links are trustworthy. In the earlier case where the finance site is favoring the payday loan, that’s where the user needs to take more care. If something feels heavily promoted and doesn’t exactly match the user’s intent, then it’s highly likely to be a sponsored affiliate link where the only winner is the hosting site.
Looking Ahead: Trust Signals and Regulation
As the affiliate market grows, so too does the education and mindset of the end user. People today are more aware of how this concept works and are going to value trust, authority, and transparency over hype and over-promotion.
Google is already doing its part. Its 2025 algorithm now penalizes low-quality affiliate sites that offer thin or duplicate content, placing them much further down in the search results. Sites losing traffic will need to adjust their affiliate relationships to avoid this happening.
The future of affiliate marketing will rely on the hosting site building trust by delivering genuinely helpful content that meets the user’s intent and then providing affiliate links to trustworthy and relevant sites.