One of the reasons affiliate marketing can provide a higher ROI than other channels is because it’s performance-based. Merchants only pay for actual customers, not just visits. This gives affiliate marketing a big advantage over other channels, such as PPC, where it’s easy to spend a ton of money on clicks without producing any actual conversions.
When there are multiple affiliates involved in one transaction, payment gets much more complicated. Sometimes it’s even possible for affiliates to jump in at the last minute and claim commissions for customers brought in by other affiliates. Successful programs use multi-channel attribution to ensure the affiliates that create the most value get paid the most.