Note: This article references Japan-specific affiliate networks (ASPs) such as A8.net and ValueCommerce, and Japan's stealth-marketing disclosure rules under the Act against Unjustifiable Premiums and Misleading Representations. The general concepts apply globally, but readers outside Japan should check the equivalent networks and rules in their own market.
When you hear "affiliate marketing," many people picture "a way to earn money by promoting products on a blog or social media." At the same time, for EC operators, it's also a customer-acquisition method where other people promote your products for you.
This article explains what affiliate marketing means, how it works, its benefits and drawbacks, and how to use it on Shopify.
What Is Affiliate Marketing?
Affiliate marketing is a "performance-based advertising" system where you promote a product or service, and get paid based on a result such as a purchase or sign-up.
For the person doing the promoting, it's a way to earn income; for the advertiser, it's a customer-acquisition tactic. The same mechanism means something different depending on which side you're on.
Affiliate Marketing as a Way to Earn
For the person doing the promoting, affiliate marketing is one way to monetize a blog or social media account.
For example, you might write a product review on a blog and place an affiliate link within the article. When a reader purchases the product through that link, the promoter earns a commission.
It's easy to get started without any special qualifications or upfront cost, and it remains a popular way to earn side income.
Affiliate Marketing as a Customer-Acquisition Method
From the advertiser's perspective, affiliate marketing is a customer-acquisition method for spreading the word about a product or service.
By having affiliates or influencers promote their products, advertisers can reach people who would otherwise be hard for them to reach on their own.
Because payment is tied to results, it's a method whose cost-effectiveness is easy to manage.
How Affiliate Marketing Works
Affiliate marketing operates through a system involving four parties: the "advertiser," the "ASP," the "affiliate," and the "user."
The Roles of the Advertiser and the Affiliate
The advertiser sets the product or service they want promoted, the conditions that count as a "result," and the commission amount. For example: "Pay a commission of 5% of the order price for every product purchase."
The affiliate promotes the product on their own blog, social media, or elsewhere, and directs users to the advertiser's site.
The Role of the ASP
ASP is short for Affiliate Service Provider, a service that acts as an intermediary between advertisers and affiliates. It lists the campaigns advertisers submit so affiliates can choose from them, and it also handles tracking results, tallying commissions, and managing payments.
Representative ASPs in Japan include A8.net and ValueCommerce.
The Flow Until a Commission Is Earned
The basic flow until a commission is earned in affiliate marketing is as follows:
- The affiliate places the advertiser's dedicated link (an affiliate link) on their own media.
- A user clicks that link and accesses the advertiser's site.
- The user meets a predetermined success condition, such as purchasing a product or signing up as a member.
- Once the result is tracked and approved, the commission is paid to the affiliate.
Commission structures include cases with a fixed amount per result, as well as cases set as a fixed percentage of the sale amount (a commission rate).
The Main Channels Used for Affiliate Marketing
There are three main channels used for affiliate marketing:
Blogs and Websites
The most widely used channel, and a good match for content that can attract search traffic, such as product reviews or comparison articles.
SNS
Promotion through posts or videos on platforms like Instagram, X (formerly Twitter), or TikTok. A defining feature is promotion that leans on trust built with followers.
YouTube and Video Media
Product introduction videos and usage reviews are easy for viewers to absorb, and this channel is effective at raising purchase intent.
The Benefits of Affiliate Marketing
Affiliate marketing offers benefits for both the promoter and the advertiser.
For the Promoter, It's Easy to Start With Low Upfront Cost
A major benefit for affiliates is that they can start without any special upfront investment. If you already have a blog or social media account, you can get started with almost no additional cost, and choose campaigns that fit the product category or the nature of your media.
This makes it a relatively easy way for people to try monetizing online.
Advertisers Can Pay Ad Spend Based on Results
For advertisers, the biggest benefit is that it's a system where you only pay when a result occurs. By setting your success conditions and commission amount in advance, you can drive customer acquisition while controlling your cost-effectiveness to a certain degree. This makes it well suited to businesses that want to widen their customer-acquisition funnel while keeping risk low in the early stages.
The Drawbacks and Points to Watch Out for With Affiliate Marketing
Affiliate marketing is a convenient system, but there are points worth knowing about.
It Doesn't Necessarily Lead to Income Right Away
For an affiliate, simply placing a link doesn't mean income starts flowing in immediately.
It's rare for stable income to follow soon after you start creating articles or videos — generating results requires ongoing content creation and traffic-building.
You Need to Follow Advertising Disclosure Rules and Terms of Service
In affiliate marketing, you need to clearly disclose that something is an advertisement.
In Japan, stealth marketing has been subject to regulation under the Act against Unjustifiable Premiums and Misleading Representations since October 1, 2023. In articles or social media posts, include a disclosure that lets users know it's an advertisement — such as "Ad," "PR," or "This uses affiliate advertising."
You also need to comply with the terms of service of the ASP and each platform, and make sure your content doesn't include exaggerated claims or false information.
For Advertisers, Recruiting and Managing Affiliates Takes Effort
A challenge on the advertiser's side is the effort involved in running the program and managing it. Launching an affiliate program doesn't mean a large number of promoters will gather right away — it requires an ongoing set of operations: recruiting, onboarding, setting success conditions, and managing commissions.
There's also a risk of fraudulent clicks or inflated results, so it's important to put fraud-prevention measures in place as well.
How to Use Affiliate Marketing on Shopify
From here, let's look at how to use affiliate marketing on Shopify from the advertiser's perspective. If you use Shopify, you can build an affiliate program as a customer-acquisition tactic for your own e-commerce store.
Here are our recommended affiliate apps for Shopify
How It Differs From the Shopify Affiliate Program
One thing that's easy to confuse this with is the "Shopify Affiliate Program." That's an affiliate program run by Shopify itself, where you earn a commission by promoting the Shopify platform.
By contrast, the affiliate tactics a Shopify store builds to have its own products promoted are an entirely separate thing — be careful not to mix them up.
The Difference Between the ASP-Based Approach and the In-House Approach
There are broadly two ways to run affiliate marketing on a Shopify store: the "ASP-based approach" and the "in-house approach."
The ASP-based approach means registering as an advertiser with an external ASP such as A8.net or ValueCommerce, and having affiliates on that platform promote your products. The appeal is that, by using an ASP where many affiliates are already registered, you can skip the effort of recruiting promoters from scratch. On the other hand, you'll incur a platform fee on top of the ASP's usage fee and performance-based commissions.
The in-house approach means building your own affiliate program directly on your Shopify store using an app. Since there's no intermediary fee, it's easier to raise cost-effectiveness, but you have to handle recruiting and managing affiliates yourself. It's also well suited to promotional tactics that make use of your relationships with influencers or existing customers.
How to Build an In-House Affiliate Program With a Shopify App
On Shopify, you can build an in-house affiliate program using an app. For example, apps like UpPromote and Refersion let you handle link generation, managing your promoters, tracking results, and commission management.
Both apps can be installed from the Shopify admin dashboard and set up right away. It's a good idea to start with a free plan or free trial period to see whether it fits your needs.
Start Driving EC Customer Acquisition With Affiliate Marketing on Shopify
Because affiliate marketing pays out based on results, it's a customer-acquisition tactic whose cost-effectiveness is easy to manage. With Shopify, you can use an app to build your own affiliate program directly on your EC store.
Shopify is a monthly subscription-based e-commerce platform that you can start with a 3-day free trial (as of May 2026). If you want to widen your range of customer-acquisition tactics, why not consider introducing an affiliate program alongside launching your store on Shopify?
For a detailed guide to getting started with Shopify, see here
