Affiliate marketing relies on tracking customer interactions to determine which affiliate deserves credit for a conversion. In this article, we explore two fundamental attribution models—First Touch and Last Touch—to help you understand how credit is allocated and what each model means for your affiliate program.

Understanding Attribution in Affiliate Marketing

Attribution in affiliate marketing is the process of assigning credit to various marketing touchpoints along a customer's journey. Different models help determine which affiliate was instrumental in driving the customer to take action, and choosing the right model can impact commission distribution and overall partner satisfaction.

First Touch Attribution

First Touch Attribution gives all the credit for a conversion to the first affiliate that interacted with the customer. This model is ideal when your marketing strategy focuses on acquiring new leads and building initial awareness.

How It Works

When a potential customer clicks an affiliate link for the first time, that interaction is recorded as the starting point of their journey. Even if other affiliates or marketing channels subsequently influence the customer, the initial affiliate receives full credit for the eventual conversion.

Example Scenario

Imagine a blog post sharing an innovative SaaS solution where a visitor clicks the affiliate link embedded in the initial review. Even if the visitor later reads another article or sees additional promotions before signing up, the first-touch affiliate is credited with the referral.

Last Touch Attribution

Last Touch Attribution, on the other hand, credits the affiliate who was the final point of contact before the conversion occurs. This model is favored in scenarios where closing the deal is seen as the most important factor.

How It Works

In a Last Touch model, the affiliate who directs the customer to the conversion page—or the last affiliate interaction recorded—receives 100% of the credit. This method prioritizes the final push that turns a prospect into a customer.

Example Scenario

Consider a case where a potential customer researches a solution through multiple channels. If a second affiliate sends a reminder email or provides a timely push just before the customer signs up, that affiliate would be credited with the sale under last touch attribution.

Comparing First Touch and Last Touch

Both attribution models carry distinct advantages:

• First Touch Attribution:

• Rewards affiliates for creating initial interest.
• Ideal for awareness and lead acquisition campaigns.
• May not account for later influences that help convert a lead.

• Last Touch Attribution:

• Acknowledges the affiliate who played the final role in closing the deal.
• Commonly used when the conversion trigger is clearly defined.
• Can overlook the contributions of earlier engagements that introduced the customer to the product.

Best Practices for Using Attribution Models

Understanding your business model and marketing journey is key to selecting the right attribution approach. Here are some best practices:

Evaluate Your Customer Journey

Analyze the complete customer journey to determine which touchpoints are most influential. You might find that a combination of first touch and last touch insights offers a well-rounded picture of affiliate performance.

Set Clear Goals

Decide whether your primary objective is to capture initial interest or to drive conversions. This will guide which model you prioritize for commission payouts.

Consider Hybrid Attribution

Many businesses opt for a hybrid or multi-touch model that distributes credit across various interactions. While more complex, this approach can balance the benefits of both first and last touch models.

Leverage Tracking Tools

Utilize robust affiliate tracking software like Rapid Affiliates to monitor and analyze various touchpoints. Detailed dashboards provide insights into which affiliates are effective at either end of the customer journey.

Conclusion

First Touch and Last Touch attribution models each provide unique insights into your affiliate marketing strategy. By understanding and applying these models effectively, you can more accurately reward your affiliates and refine your marketing efforts. Whether you choose to focus on early engagement or the final conversion push, the key is to align your attribution strategy with your overall business goals, ensuring that every affiliate touchpoint is optimally leveraged.