Merchant (Advertiser)

The merchant is the company that actually owns the product and runs the affiliate program. They are also called the advertiser, because from their point of view an affiliate program is a way to advertise: they only pay when a sale or a qualified action happens. In affiliate marketing, the merchant is the party on the other end of your link.

Merchant owns the product
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Merchant sets the commission
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Affiliate sends a buyer
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Merchant fulfills the sale and pays the commission

Merchants like affiliate programs because the cost is tied to results. They can have hundreds of affiliates promoting for them and only pay out when those affiliates deliver actual sales. That is why commission rates and cookie windows are set by the merchant, not the affiliate. If a merchant offers a low commission or a short cookie window, that is a business decision on their side that directly affects what you can earn.

As an affiliate, it is worth checking who the merchant is before you promote them. A weak product, slow payouts, or a poor sales page will limit your results no matter how good your traffic is.

To see how the merchant and affiliate split the money, read how affiliate marketing makes money.