Cookies are used to track your system’s information, your preferred settings and other things by websites. If you move away from a page where you have entered some details about yourself and then come back, there may be a cookie on  your computer set up by that website (if you have enabled cookies) which will auto enter the details about you.

Cookies are also used for affiliate tracking. If you visit a website a cookie may be set up on your computer which will help the website to pay up the person who referred you the website when you buy something from there. So cookies are used for affiliate performance tracking.

Thought cookies are not a foolproof way of paying up affiliates as many people have cookies disabled and many persons repeatedly empty their files, history and cookies. If the person buys after a week or a few days, there is no guarantee that the cookie is still on that person’s computer. (in many cases it is not there) So if the person doesnt buy something fast, then the affiliate is not paid up to his full potential. Thats a big drawback / disadvantage of using cookies for affiliate payment and performance tracking / calculation.

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