Affiliate Programs vs. Networks - What’s the Difference and How Do They Work?

Jamie Larson

Feb 9, 2026 — 6 min read

Affiliate marketing is a performance-based marketing model where businesses reward partners (affiliates) for driving desired actions like sales or leads. Affiliates promote a product or service and earn a commission on resulting sales. This model remains prominent in digital marketing and e-commerce – the affiliate marketing industry is estimated to be worth around $17 billion globally.

It's widely adopted across the online business landscape: over 80% of brands leverage affiliate partnerships, and in the U.S., about 16% of all online orders are driven by affiliate referrals. Because businesses only pay for actual results, affiliate marketing can yield a strong average return on investment (ROI), often cited as about $12 in revenue for every $1 spent. This guide explains the two fundamental components – affiliate programs and affiliate networks – and how marketers can use them to scale online revenue.

What is an affiliate program?

An affiliate program is a direct partnership arrangement between a merchant (the business selling products or services) and individual affiliates. The business establishes its own in-house system to track referrals and manage commission payments, creating its own affiliate marketing platform or initiative.

The merchant defines all the rules: commission rates, cookie duration, and affiliate approval criteria. The merchant manages the relationship directly with each partner.

The merchant recruits affiliates by reaching out to bloggers, influencers, or customers or by adding a sign-up page on their website. Managing the program involves providing marketing materials (links, banners, product info) and communicating regularly with affiliates to ensure they adhere to branding guidelines.

Example of branding guidelines: Affiliates operating an in-house program might be required to use only pre-approved brand logos, prohibited from bidding on trademarked keywords (e.g., the company name) in paid search, and mandated to use specific disclaimers in their content.

Example: One of the most famous affiliate programs is Amazon Associates. Affiliates sign up directly with Amazon to promote millions of products and earn a percentage of sales referred via special links. While Amazon doesn't publicly disclose the exact payout, the program drives billions in sales, highlighting the immense commercial potential of a dedicated, in-house system. Currently, over 84% of brands have some form of affiliate program in place.

What is an affiliate network?

An affiliate network is a third-party platform that acts as a marketplace connecting many different merchants with many affiliates. Rather than operating a program independently, an affiliate network serves as a centralized marketplace, consolidating numerous affiliate programs in one place. The network provides the infrastructure to track affiliate referrals and handle commission payments, and acts as an intermediary to facilitate the partnership.

When a business joins, it gains access to a pool of pre-registered affiliates actively looking for offers. The network tracks all clicks and conversions and manages consolidated payouts to affiliates. In exchange for these services, the network charges fees or takes a small cut of each commission or sale. From the affiliate’s perspective, the network offers a one-stop portal to find multiple offers without having to sign up for dozens of separate in-house programs.

Examples: The best affiliate networks include Offer.One, ShareASale, Rakuten Marketing, CJ Affiliate, FlexOffers, Impact, and Awin.

Affiliate programs vs. affiliate networks

Both programs and networks are avenues to run performance-based marketing, but they differ significantly in scope and management. The key differences can be highlighted in terms of control, scale, cost, and ease of management:

Factor	Affiliate Program (In-House)	Affiliate Network (Third-Party)
Relationship	Direct one-to-one between the merchant and affiliates.	An intermediary platform between merchants and affiliates.
Control & Customization	High control (set own terms, branding, approve selectively).	Limited control (must operate within the network's standardized framework).
Scale & Reach	Recruitment is manual, niche-specific, and grows gradually.	Immediate access to a broad pool of affiliates offers extensive reach.
Management Effort	More hands-on (set up software, handle approvals, pay directly).	More streamlined (network provides tracking, reporting, payouts).
Cost Structure	No network fees. Costs are commissions and software. More cost-effective long term.	Network fees apply (setup, monthly, and/or a percentage of commission).

Ultimately, running your own affiliate program gives you greater control but requires more effort to build. Using an affiliate network offers a ready-made infrastructure and a large affiliate base, but involves fees and less direct control. Some businesses leverage both simultaneously.

How affiliate programs and networks work together

Choosing is not always an "either-or" situation. A hybrid approach often maximizes success.

Many successful businesses combine both methods to maximize their success. A business might run its own affiliate program to nurture a direct community of loyal customers or niche influencers closely aligned with the brand. Simultaneously, the company can join an affiliate network to tap into a wider, pre-registered pool of affiliates. This strategy offers the best of both worlds: the control and branding of a direct program, plus the expansive reach and convenience of a network marketplace.

Combined strategy example: A mature D2C e-commerce brand like Allbirds maintains its in-house program for its top-performing content publishers, allowing for personalized, direct relationships and higher negotiated commission tiers. At the same time, they partner with a large network like Impact to onboard thousands of smaller, global niche bloggers and coupon sites, leveraging the network's international tracking capabilities and massive scale for mass distribution.

When using both, it's vital to keep the terms consistent (e.g., the same commission rates) to prevent conflict and ensure affiliates don't favor one channel over the other.

Benefits of joining an affiliate network

Affiliate networks bring distinct advantages to both sides:

For businesses (merchants/advertisers):

Access to a large affiliate pool: Instant exposure to thousands of potential affiliates without manual outreach.
Fast, centralized setup: A ready-made platform simplifies launching and managing a campaign without building tracking technology from scratch.
Administrative support: Networks handle operational tasks like aggregating and issuing affiliate payments, reducing the merchant's administrative burden.
Fraud screening and quality control: A top affiliate network vets affiliates and employs robust fraud detection measures, protecting the merchant's budget and brand quality.
Scalability and growth: The network infrastructure and pool allow businesses with aggressive growth goals to ramp up faster.

For affiliates (publishers):

One-stop shop for offers: Access to a wide selection of affiliate programs across various brands and niches via a single account.
Reliable tracking and payout: Networks invest in solid technology and reliable payment processes. Affiliates receive convenient, consolidated monthly payments.
Support and resources: Many networks offer helpful resources like affiliate managers, training materials, and performance dashboards to help affiliates succeed.
Low barrier to entry: Most networks are free to join, making it easier for new affiliate marketers to get started and experiment with different products.

How to choose between a program and a network

Choosing the right approach depends on your business goals, resources, and context.

Business size and stage: A small startup should use a network for the quickest launch and immediate access to affiliates. A mature business should build its own program for greater control and direct branding.
Goals and reach: Choose a network for rapid, broad scale (maximum partners). Choose an in-house program for brand control and cultivating a select group of high-quality partners.
Budget and cost considerations: If your marketing budget is tight, a self-hosted program can be more cost-effective long-term as it avoids network fees. If the budget allows, the convenience of a network might justify the cost.
Technical and management resources: If you lack a dedicated affiliate manager or technical expertise, an affiliate network will handle tracking and payments. If you possess these resources, an in-house program using modern software is feasible.
Niche and affiliate availability: If your niche has huge representation on major networks, join them. If you operate in a very specific B2B or specialized market, you may need to build your own program and recruit directly from industry contacts.

Example scenario: A small SaaS startup with limited marketing staff might choose a network like Impact or CJ to launch quickly, potentially seeing a 20-30% faster affiliate revenue ramp-up compared to building in-house. As the company grows, it might create its own affiliate program for customized commission structures. Conversely, a mature e-commerce brand that already has hundreds of affiliates might stick to its in-house affiliate program to maintain direct control and avoid fees, leading to an estimated 15-20% lower annual operating cost by skipping network fees.

Best practices for success in affiliate marketing

Regardless of the model you choose, these core practices will drive success:

Choose quality partners over quantity: Focus on recruiting affiliates who genuinely align with your product and target audience, even if their audience is smaller but highly engaged.
Offer competitive commissions and clear terms: Set a commission structure that motivates affiliates (e.g., retail 5–10%, software 20–30%) and clearly communicate all terms and conditions upfront.
Provide marketing support and resources: Give affiliates the tools they need, including ready-made creatives, deep links, and a dedicated affiliate marketing guide with tips on promotion. Dedicated managers should maintain regular communication.
Track performance and optimize continuously: Use analytics to identify top performers and trends. Reward top affiliates with incentives, and adjust strategies that aren't working.
Ensure timely payments and foster trust: Prioritize reliability in payouts. Paying affiliates accurately and on schedule is crucial for long-term partnerships.
Stay compliant and up-to-date: Ensure affiliates know to follow advertising disclosure guidelines (like the FTC rules). For help on how to start and succeed in affiliate marketing, use this “Affiliate Marketing 101” guide and refer directly to the FTC Endorsement Guides to ensure proper disclosure.
Prevent fraud and protect your brand: Use tools and policies to minimize fraud, such as trademark bidding without permission or cookie stuffing, safeguarding your budget and legitimate affiliates.

Conclusion

Affiliate marketing continues to be an effective way to scale online revenue. Understanding the distinction between an affiliate program (in-house control) and an affiliate network (third-party convenience and reach) is key to leveraging it effectively. Each model has its pros and cons, and many businesses find success with a combination. The choice should align with your company’s size, goals, and resources. What’s most important is that you actively manage whichever channel you choose, treating your affiliates as valued partners. Your success hinges on making an informed choice that aligns your control needs with your growth goals. Start evaluating your options today to build a sustainable and lucrative affiliate marketing channel in 2026.