Key Insights
- Each influencer must have a distinct tracking link and a unique discount code. Links monitor clicks, while codes track conversions independently of the link.
- For products with a low average order value, flat-rate commissions are more effective; for products over $80 AOV, percentage-based commissions work better.
- UTM parameters are a useful free tool, but they lose effectiveness when users close their browser. Cookie-based tracking fills this gap.
- Begin with 3–5 influencers and a 30-day cookie window before expanding. Quality data is key, not just quantity.
You’ve identified influencers who genuinely appreciate your product. They’re promoting it, and sales are likely occurring. However, the lack of proper tracking means you’re compensating influencers based on assumptions rather than data. This could lead to overpaying underperforming influencers or underpaying successful ones, jeopardizing partnerships.
This guide will assist you in setting up influencer affiliate tracking on your Shopify store from scratch. By the end of this process, you’ll have unique tracking links and discount codes for each influencer, a viable commission structure, and a dashboard displaying which influencer is responsible for each sale. Say goodbye to guesswork.
Step 1: Select Your Tracking Method
You have three options, but they are not equally effective.
Option A: Discount codes only. While Shopify allows you to create unique discount codes without an app, this method has limitations. You can’t track clicks or differentiate between traffic generated and actual conversions.
Option B: UTM parameters only. By adding UTM tags to URLs, you can utilize Google Analytics for tracking. However, UTMs are ineffective if users close their browser, clear cookies, or switch devices.
Option C: Dedicated affiliate app with cookie-based tracking. This option is the most comprehensive. Apps like ReferralCandy, Refersion, or UpPromote provide unique links per influencer, utilize cookies for attribution, and offer click and conversion tracking.
If you are managing multiple influencer partnerships, opt for Option C to save time on manual reconciliation tasks.
Step 2: Install and Set Up Your Affiliate Tracking App
Visit the Shopify App Store and install the affiliate app of your choice. The following steps are general and applicable to most affiliate apps on Shopify.
Prior to inviting influencers, configure the following:
Cookie duration. Set a minimum of 30 days, as recommended by Shopify. Longer durations are suitable for high-ticket items with longer consideration cycles.
Attribution model. Most apps default to last-click attribution, but consider first-click attribution if your influencers introduce your brand to new audiences.
Order qualification rules. Determine if influencers earn commission on the entire order or specific products, and establish rules for returns and refunds.
It is crucial to conduct a test purchase through an affiliate link to ensure proper attribution before launching.
Step 3: Generate Unique Links and Discount Codes for Each Influencer
Do not overlook this step. Each influencer requires both a unique tracking link and a unique discount code. The link tracks clicks, while the code captures conversions from direct visits.
When creating links, direct them to the most relevant page rather than the homepage. For discount codes, keep them simple and easy to remember.
Tip: Maintain a spreadsheet or utilize the app’s dashboard to organize each influencer’s link, code, commission rate, and cookie window.
Step 4: Establish Your Commission Structure
The commission structure is crucial to the success of your influencer marketing. Consider percentage-based or flat-rate commissions, and implement tiered commissions for top performers.
Keychron, a mechanical keyboard brand, achieved significant customer referrals by aligning the commission structure with their community of passionate creators.
Step 5: Develop a Simple Onboarding Process
Provide influencers with essential information in a concise document, including their link, code, commission rate, payout schedule, and disclosure requirements.
Compliance with FTC disclosure guidelines is mandatory. Grant influencers access to their affiliate dashboard for transparency and motivation.
Start with a small group of influencers to refine your tracking system and onboarding process before expanding.
Step 6: Monitor Performance and Optimize
Regularly review your affiliate dashboard to analyze influencer performance based on click-to-conversion rate, average order value, and revenue per click. Cross-reference data with Google Analytics to identify anomalies.
Wing Assistant achieved a significant ROI by tracking performance, learning from results, and optimizing their affiliate program.
FAQs
Can I track influencer affiliates using only Shopify’s built-in tools?
While Shopify’s tools allow basic conversion tracking with unique discount codes, a dedicated app is recommended for comprehensive tracking, attribution, and automated payouts.
What cookie duration should I set for influencer tracking?
Begin with a 30-day duration, extending to 60 or 90 days for high-value products with longer purchase cycles.
How do I prevent discount codes from leaking to coupon sites?
Utilize single-use or limited-use codes for smaller influencers and monitor redemptions to detect leakage.
Should I use first-click or last-click attribution?
Last-click attribution is suitable for most scenarios, but consider first-click attribution for influencers introducing your brand to new audiences.
How many influencers should I start with?
Initiate with 3–5 influencers to ensure proper tracking before expanding your program.
Do influencers legally need to disclose that they’re affiliates?
Yes, compliance with FTC disclosure guidelines is mandatory for all social media content.
Next Steps
After setting up your tracking system, focus on analyzing data from the first month to make informed decisions. Renegotiate rates with top performers, terminate underperforming partnerships, and streamline onboarding for future influencers. Success in affiliate marketing lies in rigorous tracking and data-driven actions.
