Educational Guide
Many people use these terms interchangeably, but they refer to two fundamentally different things. Understanding the difference is the first step to choosing the right approach for your business.
Affiliate software is a tool you use to build and manage your own affiliate program. Affiliate networks are marketplaces where you list your program alongside other businesses to attract affiliates who are already looking for programs to promote.
One is infrastructure you control. The other is a directory you join.
| Aspect | Affiliate Software | Affiliate Network |
|---|---|---|
| What It Is | Software platform to run your own program | Marketplace connecting merchants with affiliates |
| Control | Full control over your program and data | Limited control; you follow network rules |
| Partner Discovery | You recruit partners yourself | Affiliates find and apply to your program |
| Relationship Ownership | You own partner relationships | Network brokers the relationship |
| Fees | Monthly SaaS subscription | Setup fee + transaction overrides |
| Time to Launch | Days to weeks (requires setup) | Days (once approved by network) |
| Best For | Businesses building for the long term | Businesses wanting quick affiliate access |
Affiliate software (also called partnership management software) is a platform that provides the technology infrastructure to run your own affiliate program. You install tracking, manage partners, process commissions, and handle payouts through the software.
Examples include Impact.com, PartnerStack, Tapfiliate, and Rewardful.
An affiliate network is a marketplace that connects merchants (businesses with products to sell) with publishers (affiliates who promote products). The network handles tracking, reporting, and payment processing between merchants and affiliates.
Examples include ShareASale, CJ Affiliate, and ClickBank.
Software: Subscription-based. You pay a monthly or annual fee regardless of transaction volume. No per-transaction fees. Learn about Impact.com pricing →
Network: Typically charges a setup fee plus a percentage override on commissions paid. For example, ShareASale charges a $625 setup fee, $35/month minimum, and a 20% override on affiliate commissions. See ShareASale cost comparison →
Software: You control commission structures, partner approval, communication, branding, and data. All partner relationships belong to you.
Network: The network sets terms for participation. Partners technically belong to the network ecosystem. If you leave the network, you may need to rebuild partner relationships.
Software: Advanced options including multi-touch attribution, cross-device tracking, and custom attribution rules. You decide how credit is assigned. Learn about tracking →
Network: Standard click-based tracking with basic attribution. Limited customization options.
Software: You recruit partners through your own efforts or the platform's marketplace (if available). Requires proactive outreach but gives you control over partner quality.
Network: Affiliates discover your program through the network. Less effort to attract initial partners, but you compete with other merchants for attention.
Software: Scales with your program. Adding more partners doesn't increase per-transaction costs. Most platforms offer tiered plans.
Network: Costs scale with transaction volume due to percentage overrides. At high volumes, the percentage fee becomes significant.
Yes, many businesses use both a network and software. For example, you might use ShareASale to access their affiliate pool while using Impact.com to manage direct partnerships and creator relationships. This gives you the best of both approaches, though it adds complexity and cost.
An online clothing store wants to start affiliate marketing. They could:
Using a network (ShareASale): Pay $625 setup + $35/month + 20% commission override. Get access to fashion affiliates already on the platform. Quick setup but limited control.
Using software (Impact.com): Subscribe to the platform. Recruit affiliates directly. Own all relationships. Pay no per-transaction fees but higher monthly commitment.
A SaaS company wants to run a referral program. They could:
Using a network: Limited options for SaaS-specific programs on most networks.
Using software (PartnerStack or Impact.com): Full control over recurring commission tracking. Customize the partner portal. Manage both affiliates and resellers in one place.
Yes, you can manage affiliates manually using spreadsheets and manual payment processing. This works for very small programs (under 10 partners) but becomes impractical as you scale.
A network may be cheaper upfront (per-transaction pricing means you only pay when you generate sales). Software requires a monthly commitment regardless of results. However, as your program grows, software typically becomes more cost-effective because there are no per-transaction fees.
Yes, many businesses start with a network and migrate to software as their program matures. You'll need to re-onboard your affiliates to the new platform, but your existing relationships can transfer.
Not necessarily. Most businesses choose one approach. Using both simultaneously is uncommon and typically only makes sense if you have distinct programs or partner segments that benefit from different platforms.