Affiliate marketing is a performance-based marketing strategy where a brand pays a creator a commission each time someone buys a product or signs up for a service through the creator’s unique link or code. No sale means no payment, but every sale gets tracked and rewarded automatically, which is what makes affiliate marketing different from a brand deal.
How affiliate marketing actually works
Every affiliate link carries a hidden tag. Clicking it drops a small tracking file, called a cookie, into the browser, and that cookie tells the brand which creator sent the buyer. Some brands use a discount code instead, which skips the cookie but works the same way.
The cookie doesn’t last forever, and the window varies by brand. Foxtale, a skincare brand, gives affiliates a 14-day window to convert a click into a sale, while Myntra’s programme tracks purchases for roughly a day. That gap explains why a festive-season reel might still earn commission on Foxtale sales made a week later, while the same tactic on Myntra rarely works past the next morning.
Platforms handle the mechanics differently too. Instagram lets a creator drop a link straight into a Story, while YouTube confines affiliate links to the video description, forcing a viewer to tap out first. That one extra tap is part of why Stories tend to convert affiliate clicks faster than long-form reviews.
Why it becomes a genuine second income
A brand collaboration pays once but an affiliate link keeps paying as long as the content stays online and the link stays active. A well-ranked blog post or an evergreen YouTube tutorial can generate sales years after publication, while a Reel usually stops earning once the algorithm buries it within days.
Cashback and coupon sites earn commission on price-sensitive clicks, chasing whoever offers the steepest discount that week. Creators earn differently, because a follower often buys a product specifically since a familiar face recommended it, not because a discount page flashed past them.
What Indian brands actually pay
Commission rates are very different, and few brands publish them directly, so the figures below come from affiliate networks and brand-run portals, not from any single industry standard.
Foxtale’s own affiliate portal advertises up to 15% commission on every sale. Nykaa runs a programme called NAP, which pays a flat 7.2% across categories but requires at least 5,000 followers to join. Flipkart’s public affiliate programme spans up to 8%, depending on category, while Myntra runs no open sign-up at all, routing creators through networks such as Cuelinks and EarnKaro at rates between 3.75% and 10%. Amazon and Flipkart have thin commissions across millions of listings, while a single-brand company like Foxtale can afford a bigger slice per sale.
Wishlink, the Delhi-based creator commerce platform splits commission with creators at 0.5% to 12% depending on the brand, though select brands pay flat rates as high as 15% to 20% through the platform. That range is why Wishlink can feel like it pays less on some brands and more on others: the platform doesn’t set one universal rate, the individual brand does.
What this means for India’s creators
Affiliate marketing lowers the bar to entry that brand deals usually demand. Nykaa’s own threshold sits at 5,000 followers, while Amazon and Flipkart accept almost anyone with a working social account or website.
Consider a Mumbai-based beauty creator with a modest following who tags a Nykaa serum in a Reel. The brand-deal route needs a media kit, a pitch, and weeks of back-and-forth. The affiliate route needs one tagged product and a link, and commission lands automatically once someone buys, without a single email exchanged.
The trade-off is control. A brand deal pays a fixed fee regardless of sales, while affiliate income depends entirely on how many followers convert into buyers, so a viral post with poor purchase intent can still earn nothing.
For more on how smaller creators are building income outside brand deals, see TCI’s take on how nano-influencers are monetising without a large following.
Frequently asked questions
How do affiliates earn money?
An affiliate earns a percentage of each sale, lead, or signup that a brand can trace back to a unique link or code. Payment triggers once the brand confirms the transaction, which can take days or several weeks.
What skills are needed for affiliate marketing?
Content creation matters less than product judgement and tracking literacy. A creator needs to read click and conversion data and build enough trust that a recommendation doesn’t feel like an advertisement.
Who is eligible for affiliate marketing?
Eligibility depends on the programme. Amazon Associates and Flipkart Affiliate accept almost any website or social account, Nykaa’s NAP sets a 5,000-follower minimum, and Myntra restricts entry to approved networks.
What are the risks of affiliate marketing?
Income isn’t guaranteed and moves with audience behaviour rather than effort. Commissions reverse on cancelled or returned purchases, and under India’s advertising rules, every affiliate link needs a clear disclosure such as #affiliate or #ad, since ASCI treats commission-based promotion as a material connection that consumers must be told about.
