The ways in which Affiliate Tracker work, are configurable for each user from the administrator area.
This is the default option. When an affiliate account is created, it gets a default affiliate link and you don't need to do anything to get it working. If the affiliate account is active, when a guest arrives to your webpage with that link, a log entry will be created in Affiliate Tracker and whenever it makes a purchase or an action that needs to be tracked, an Affiliate Tracker conversion will be created from the guest to the affiliate that owns the link.
Affiliate link with referral word
The default affiliate link can be customized for each affiliate in order to make it more beautiful or to make it point to a specific page inside your Joomla.
In some cases, you may want to track if a guest is comming from a link placed in your affiliate webpage. By setting your affiliate website url in the Refer Url field of it's configuration, when a guest that is visiting your affiliate webpage clicks on a link that points to your website, a log entry will be created in Affiliate Tracker and the guest's actions will started to be tracked.