What is Affiliate Marketing Software?
By the ShopifyMLM team · 12 min read
Affiliate marketing software is used to facilitate affiliate partnerships. It identifies affiliates that have referred a sale and pays them a commission accordingly.
For example imagine that you have an online store and hire a number of promoters to refer customers. Affiliate software takes care of it making the process of commission calculation smooth and precise. According to Shopify, the affiliates “earn commissions from sales generated through referral links.”
What does Affiliate Marketing Software Do?
Affiliate software is a solution that automates the whole affiliate program process. It creates unique referral links tracks each sales and calculates commissions according to the payout rule set by you. The alternative would be manually collecting information in spreadsheets, but the former requires less time and labor.
Steps for Running Affiliate Marketing Program
Here are basic steps to take when starting an affiliate marketing program.
Referral Links: Each affiliate receives a specific URL or a link to send to your potential clients.
Clicks & Sales tracking: Each click is logged along with every purchase.
Commission rules: You set up the payouts for each affiliate. For example, $5 for each referral sale or 10%.
Payout Automation: Some software platforms allow to automate the payments and distribute them automatically.
It is also important to think about refunds. In case a customer returns an order you should reduce the commissions paid to the affiliate. Fortunately most affiliate marketing software does it automatically.
So Why Do You Need Affiliate Software?
Affiliate marketing software allows for the following benefits:
- Scaling your affiliate program.
- Avoiding errors in calculations.
- Having everything managed in one place.
- Expanding your affiliate program quickly.
Most Shopify users use affiliate apps to turn occasional buyers into loyal advocates. Affiliates promote their purchases on different media making your customers your brand ambassadors.
Affiliate vs MLM Shopify Integration
The difference between affiliate marketing software and Shopify MLM software is the depth of the commissions. The first type offers payouts to one-level affiliates. MLM software offers payouts for every sale made under every affiliate account.
Refunds, cancellations, and reversals
When searching for the best affiliate software solutions you may want to consider the following elements.
- Easy onboarding.
- Flexible commissions.
- Support for coupon codes.
- Automatic payments.
- Detailed reporting.
- Global/multi-currency payments.
- User-friendly dashboard.
- Good security and compliance.
Benefits of Using Affiliate Software
Here are the benefits that the software brings to your affiliate marketing efforts.
- Allows to switch to performance marketing.
- Helps you reach wider audience.
- Improves SEO.
- Increases conversions.
Want to see these features in action?
Schedule a quick demo and explore order sync, commission automation, and replicated stores with your own data.
Steps to Set Up Your Affiliate Program With Affiliate Software
Here is what you need to do to start working with affiliate software.
- Select your affiliate solution.
- Install and set up it.
- Create commission rules.
- Make a page for signing up new affiliates.
- Give your affiliates marketing material.
- Start promoting your products.
- Test everything.
- Launch and monitor.
Common Mistakes in Running Affiliate Programs
Here are common errors to avoid when working with affiliate software.
- Unplanned commission strategy.
- Inadequate affiliate onboarding.
- Not accounting for refunds.
- No tracking test.
- Poor affiliate communication.
Comparison of Affiliate Marketing Software & Shopify MLM Integration
| Feature | Affiliate Software | Shopify MLM System |
|---|---|---|
| Referral Links | Unique links/codes for each affiliate (1-tier) | Unique links + multi-level sharing (downlines) |
| Commission Levels | Single-level (each sale rewards 1 affiliate) | Multi-level (upline tiers earn on downline sales) |
| Payout Automation | Automated via app, pays only referrers | Automated including matrix/unilevel payouts |
| Refund Handling | Revokes/refunds commissions on canceled orders | Reverses both referral and downline commissions |
| Reporting | Focused on referral performance and sales | Includes team/downline analytics and hierarchies |
| Affiliate Dashboards | Simple portal for clicks & earnings | Advanced portals + replicated store views |
| Best For | One-tier referral programs (blogs, influencers) | Multi-tier network marketing businesses |
Frequently Asked Questions
Affiliate marketing software keeps record of each affiliate referring sales and automatically distributes commission.
Yes, but Shopify is not equipped for affiliate marketing. So you would need third-party solutions for running an affiliate program on this platform.
I recommend looking for a solution that supports affiliate sign-ups, automated coupon link tracking and flexible commission settings. Preferably a software that handles refunds and payouts automatically. You may also check whether the apps are ranked high and have good customer support.
Yes, there is. Affiliate software refers to a one-level referral program. Multi-level marketing software involves commissions to several tiers of affiliates or distributors. Shopify -level marketing software does both. Basic affiliate marketing software only involves referrals.
If your affiliate marketing software supports automatic payouts, it should also handle automatic refund deduction. Your affiliate would not get any commission for a returned or canceled order. You always have to check the software's refund policy beforehand.
No, you do not. Shopify is just the platform you host your store on, and your affiliate software works independently of it. You would need a Shopify app in case you decide to integrate affiliate marketing into your online store. There are plenty of affordable solutions available for all Shopify plans.
Affiliate marketing software makes running an effective affiliate program on your Shopify store easy. It makes promotion work automatically. It tracks sales and rewards affiliates accurately and quickly. In 2026 affiliate marketing can help attract more traffic and sales without investing too much in it.
Curious how this will work for your store?
Book a 15-minute demo and we'll map your Shopify setup to the MLM plan. Includes a free data sync audit.
Author: ShopifyMLM Team · Updated April 2026 — helping MLM brands connect Shopify to network marketing since 2020.
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