An in-house affiliate program is an affiliate program directly managed and tracked by a merchant without using affiliate network or platform services.
For an in-house program the merchant may use a dedicated hosted software (saas), a licensed sofware on his own servers or his own developments.
The most biggest and most kown program is Amazon Associates Program.
In-house program allows merchant to save network commissions (a percentage of affiliate payments) and to have a direct relationship with affiliates.It has also some downfalls. The merchant has to know how implement and launch a program, though, he may use consultant services. Affiliate payment can be time and ressource consuming. Moreover, affiliate recruitment is more difficult and some affiliates may have difficulties to trust the merchant for conversion tracking. The latter difficulty can be managed with affiliate conversion tracking.
In some cases, a program hosted on a network may coexist with an in-house program.
An example of pricing plan for an hosted solution: