Sets up affiliate and referral program structures with commission tiers, terms and conditions, affiliate onboarding materials, and promotional asset guidelines. Use when a user wants to launch an affiliate program, needs to recruit partners to promote their product, or wants to create a referral incentive system for existing customers.
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affiliate-program
description
Sets up affiliate and referral program structures with commission tiers, terms and conditions, affiliate onboarding materials, and promotional asset guidelines. Use when a user wants to launch an affiliate program, needs to recruit partners to promote their product, or wants to create a referral incentive system for existing customers.
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{"author":"matthewhitcham","version":"1.0"}
Affiliate Program
When to Use This Skill
Use this skill when:
A user wants to launch an affiliate or referral program for their product or service
Someone needs to recruit partners, influencers, or customers to promote their business for a commission
A user wants commission structures, terms and conditions, or affiliate onboarding materials
A creator or business owner wants to turn existing customers into referral sources with incentives
DO NOT use for joint venture legal agreements, joining other people's affiliate programs, MLM structures, or internal employee commission plans.
Core Principle
EVERY AFFILIATE PROGRAM MUST PAY ENOUGH TO MOTIVATE PROMOTION BUT NEVER ENOUGH TO MAKE THE PRODUCT UNPROFITABLE -- THE COMMISSION STRUCTURE IS THE FOUNDATION, AND EVERY OTHER DECISION FLOWS FROM IT.
Phase 1: Strategy -- Gather Program Requirements
No brief, no program. Ask these questions in two groups, waiting for answers between each.
Group 1 -- Product and Economics (ask all at once):
What product or service are you selling? (digital course, SaaS, physical product, coaching, service)
What is the price point? (single price or range)
What is your approximate profit margin per sale?
Do you have an existing customer base? How large?
Group 2 -- Program Goals (ask after Group 1):
5. Primary goal: revenue growth, brand awareness, or audience reach?
6. Who are your ideal affiliates? (influencers, bloggers, existing customers, industry partners)
7. What platform will you manage the program on? (ThriveCart, Gumroad, Rewardful, PartnerStack, manual)
8. Are affiliates bringing their own audience, or promoting to yours?
GATE: Do not proceed to Phase 2 until you have answers to at least questions 1, 2, 3, and 6. Default to ThriveCart (digital) or Rewardful (SaaS) and revenue growth if skipped.
Program Type Reference
Type
Best For
Commission Model
Standard Affiliate
Courses, digital products, SaaS
Commission per sale
Referral Program
E-commerce, services, subscriptions
Reward for referrer + referred
Ambassador Program
Brands, coaching, communities
Ongoing commission + perks
Joint Venture
High-ticket courses, events
Revenue share (40-50%)
Recommend one type. Do not present all four as equal options:
Price under $100 + existing customers = Referral Program
Price $100-997 + influencers/bloggers = Standard Affiliate
Price $100-997 + ongoing relationships = Ambassador Program
Price $1000+ + peer audience = Joint Venture
Phase 2: Structure -- Build the Program Framework
Commission Rates by Product Type
Product Type
Default Rate
Model
Digital course ($100-997)
30% per sale
One-time
Digital course ($1000+)
20% per sale
One-time
SaaS/subscription
20% recurring for 12 months
Recurring
Physical product ($35-100)
15% per sale
One-time
Physical product ($100+)
10% per sale
One-time
Service/coaching ($500+)
15-20% per sale
One-time
Low-ticket digital ($10-99)
40-50% per sale
One-time
Tiered commissions (recommend for Ambassador programs): Base (0-10 sales/month): 25%, Silver (11-25): 30%, Gold (26+): 35%. Resets monthly.
CRITICAL: Run a profitability check before finalizing:
Sale price: $497
Commission (30%): -$149.10
Platform fees (~3%): -$14.91
Fulfillment cost: -$50.00
--------
Net per affiliate sale: $283.00
If net per affiliate sale drops below 20% of the sale price, reduce the commission rate.
Cookie Duration
Product Type
Default Cookie
Impulse buy (under $50)
30 days
Considered purchase ($50-500)
60 days
High-ticket ($500+)
90 days
SaaS/subscription
90 days
Payment Terms
Default: $50 minimum payout, monthly (by the 15th), PayPal or bank transfer. Commissions on refunded sales are clawed back. Commissions held 30 days past the refund period before release.
Terms and Conditions
Generate a terms document covering these 6 sections:
Program overview -- what it is, who can join, how commissions work
Prohibited marketing -- no spam, no brand-name PPC bidding, no coupon sites without approval, no misleading claims, no fake reviews, no income guarantees
FTC disclosure -- affiliates MUST disclose in every post; disclosure must be clear, conspicuous, and before the affiliate link; hashtags alone (#ad) are insufficient without a written statement
Brand guidelines -- approved descriptions, logo usage rules, approved images only, match brand voice
Termination -- 30 days notice, immediate for violations, unpaid valid commissions still honored
Liability -- affiliate responsible for own compliance and taxes
Tracking Setup
Platform
Method
ThriveCart
Built-in affiliate center, auto-generated unique links
Sent immediately after approval. Must include: welcome (1-2 sentences), their unique link/code, commission rate and cookie duration, link to affiliate guide, link to promo assets, contact for questions, single CTA.
Example -- online course:
Subject: Welcome to the Freelance Mastery Affiliate Program
Hi Alex,
Welcome aboard -- you are officially a Freelance Mastery affiliate.
YOUR DETAILS:
Affiliate link: https://freelancemastery.com/?ref=alex-chen
Commission: 30% per sale ($149.10 per enrollment)
Cookie duration: 60 days
RESOURCES:
Affiliate Guide: [link] | Promotional Assets: [link]
Questions? Reply to this email -- I respond within 24 hours.
Start sharing your link today. Every enrollment earns you $149.10.
-- Jamie, Freelance Mastery
Example -- e-commerce referral:
Subject: You are in! Welcome to the Glow Lab Referral Program
Hi Priya,
Thanks for joining. Your friends save 15%, you earn $10 credit.
YOUR DETAILS:
Referral code: PRIYA15 (15% off for friends)
Your reward: $10 store credit per referral
Cookie: 30 days
RESOURCES:
Referral Guide: [link] | Share Graphics: [link]
Share your code on Instagram, in stories, or text it to friends.
-- The Glow Lab Team
Asset 2: Affiliate Guide
Structure the guide with these sections:
How the Program Works -- link/code, commission rate, payment schedule
Commission Structure -- rates and tiers from Phase 2
How to Promote -- top 5 strategies (personal recommendations, educational content, comparison content, email newsletters, social stories)
Do This -- share honest experience, disclose relationship, use approved assets, create original content
Do NOT Do This -- no income claims, no result guarantees, no spam, no brand PPC, no logo modification, no fake reviews, no coupon sites without approval
Payment Schedule -- from Phase 2
FTC Disclosure -- requirements and examples from terms
Contact -- email and response time
Asset 3: Promotional Swipe Copy (8 Pieces)
Create all copy tailored to the user's specific product. Every piece must include FTC disclosure language.
3 email templates:
Personal recommendation -- "The [product type] I wish I found sooner" format, one specific result, affiliate disclosure
Problem-solution -- "I used to [problem], then I found [product]" format, concrete outcome, disclosure
Newsletter mention -- brief endorsement for roundups, disclosure inline with link
3 social posts:
Instagram/LinkedIn story-based -- "I get asked all the time..." format with 3 benefits, disclosure
Twitter/X concise -- one-sentence endorsement with link, disclosure
Facebook conversational -- "Has anyone tried..." format, personal experience, disclosure
2 story/reel scripts:
Quick recommendation (15-30 sec) -- name the product, one result, link in stories, disclosure tag
Before/after (30-45 sec) -- show the problem, show the result, credit the product, disclosure
CRITICAL: Replace all bracket placeholders with the user's actual product details. Affiliates copy-paste exactly what you give them.
Asset 4: Promotional Asset Checklist
Tell the user what visual assets to prepare for affiliates: primary logo (PNG, transparent, 500px+), logo on white and dark backgrounds, hero product image (1200x1200), lifestyle image (1200x800), product mockup, Instagram banner (1080x1080), Facebook banner (1200x630), email banner (600x200), product thumbnail (300x300). All in a shared folder. No editable source files.
Spot-check affiliate content for FTC compliance monthly
Update swipe copy with new testimonials quarterly
Confirm delivery: "Your affiliate program has been saved to [path]. Here is what was created: [list files]. To launch: configure your platform with the commission structure, publish terms, and start recruiting."
Concrete Examples
Example 1: Online Course -- $497 Affiliate Program
User: "I sell a $497 course called Freelance Mastery. I want affiliates targeting coaches and educators. 85% margins. ThriveCart."
Phase 1: Standard Affiliate program (digital course + influencer targets). Phase 2: 30% commission ($149.10/sale), 60-day cookie, monthly payouts at $50 minimum. Profitability: $497 - $149.10 (commission) - $14.91 (fees) - $74.55 (fulfillment) = $258.44 net (52%) -- healthy. Phase 3: Welcome email with ThriveCart link, affiliate guide for educator audience, 8 swipe pieces focused on freelancer transformation, asset checklist with course mockup specs, 9-question application form. Phase 4: 8 files to affiliate-program/.
Example 2: E-Commerce Skincare -- Referral Program
User: "I run Glow Lab ($35-65 products). I want existing customers to refer friends. 3,000 customers. Shopify."
Phase 1: Referral Program (low price + existing customers). Phase 2: $10 store credit per referral, 15% off for referred friend, unique codes (PRIYA15), 30-day cookie. Profitability on $50 avg: $50 - $7.50 (discount) - $10 (credit) - $22.50 (COGS) = $10 net (20%) -- acceptable given 3x LTV of referred customers. Phase 3: Auto-enrollment welcome email, simplified referral guide, 8 swipe pieces framed as sharing products they love, asset checklist with product photos. No application form. Phase 4: 7 files.
Anti-Patterns
DO NOT set commissions that make the product unprofitable. Always run the profitability check. If net drops below 20% of sale price, reduce the rate.
DO NOT skip FTC disclosure requirements. Every program must include FTC language in terms, guide, and swipe copy. Non-negotiable.
DO NOT create swipe copy with income claims. No "I made $10K" or "You will earn six figures." Focus on product benefits and genuine experience only.
DO NOT build a curated Ambassador program for users with fewer than 100 customers. Not enough volume to be selective. Start with Standard or Referral.
DO NOT recommend recurring commissions for one-time purchases. Recurring only applies to subscription/SaaS products.
DO NOT create a program without terms and conditions. Even simple referral programs need basic rules. Skipping creates disputes.
DO NOT set cookie durations beyond 90 days. Attribution becomes unreliable. Cap at 120 days absolute maximum if the user insists.
DO NOT promise affiliates exclusive territories. Creates conflicts. Keep the program open.
DO NOT deliver swipe copy without disclosures built in. Affiliates copy-paste exactly what you provide -- missing disclosures in templates means missing disclosures in their posts.
Recovery
User does not know their margin: Ask for delivery cost per customer. If still unknown, default to: digital 85%, SaaS 75%, physical 50%, services 60%. Flag it: "Verify against actual costs before launching."
User wants commissions too high: Show the math, recommend a sustainable rate. If they insist, build it with a warning: "Review after 90 days."
User has no affiliate platform: Under 20 affiliates -- build manual tracking (UTM links + Google Sheets + PayPal). Scaling -- recommend Rewardful or ThriveCart. Provide structure regardless.
User wants to launch before materials are ready: Minimum viable set: welcome email, one-page guide, 2 email templates. Mark the rest as "add within 30 days."
Platform configuration fails: Provide all program docs anyway plus a manual tracking spreadsheet template.
If 3 revision rounds fail: Save with [REVISIT] tags. "Launch with what we have. Revise based on real affiliate feedback after 30 days."
Pre-Delivery Checklist
Commission structure profitable (net above 20% of sale price)
Cookie duration matches the product's decision cycle
Payment terms include threshold, frequency, method, and refund holdback
