How to manage discount codes for influencers and partners

1 One code per partner, with a fixed prefix

Give each partner their own code following a fixed pattern, like IG-ANNA-15 or YT-TOM-10: channel, name, discount. In the sales by discount code report you see at a glance who sold what.

For promotions with many individual codes, such as cards handed out at an event, create one campaign with a prefix instead of dozens of separate discounts.

2 Put limits on every code

A partner code without limits is an open door. In Shopify, set a total usage limit, one use per customer and an end date that matches the campaign. Don't let it combine with your welcome discount, or the two stack.

Choose a discount you can live with if the code leaks. According to the trade magazine Modern Retail, such codes spread quickly through browser extensions like Honey.

3 Give the partner a link as well

Not every buyer types in the code. So also give each partner their own link with two labels at the end: utm_source (where the visit comes from, such as instagram) and utm_campaign (which promotion, such as anna). Shopify then shows these visits in its marketing reports. By default, the sale goes to the last link the customer came through in the 30 days before buying; direct visits don't count. That way you also see purchases that came through the partner without a code.

4 Read the code report correctly

Shopify's sales by discount code report has two catches. Its sales figure only covers the products the code applied to, not the whole order. And when several discounts can apply together, the same order can appear more than once.

For a fair comparison between partners, also look at the number of orders and the share of new customers.

5 Watch for codes that do too well

Check redemptions per code every week. If a code is used far more often than the partner's reach can explain, it has probably landed on coupon sites. Deactivate it and give the partner a new one. Shopify lets you deactivate discounts in bulk too.

The limits on the code are your main protection.

6 Automate commissions with Shopify Collabs

Shopify Collabs is Shopify's own app for partner programs, available on all plans except Starter and Retail. Partners get a link and a code, and commission is calculated automatically. By default it's paid out after 30 days; you can set anything from 1 to 90 days. If an order is canceled or refunded within that time, its commission is voided.

Set this period at least as long as your return window, so returns don't trigger commission. Shopify charges a 2.9% fee on automatic payouts. Check first whether Collabs is available in your country.

7 In the US, follow the FTC's rules

The FTC updated its Endorsement Guides in 2023. "#ad" is fine if it's clear and conspicuous, not hidden at the end of a post. According to the FTC, a personal discount code doesn't replace the disclosure. And brands are expected to train and monitor their partners.

8 Working with German partners? Stricter labels apply

In Germany, anyone who gets something in return for a post must label it as advertising, and the law even presumes they got something. Free products or commission count, and according to Germany's media authorities, a post that publishes a discount code has to be labeled as advertising too. They require "Werbung" or "Anzeige" (German for advertising) as the first word, for example in the caption. It must also appear clearly legible right next to the discount code. "ad" or "sponsored by" isn't enough for them.