The raw URL is ugly and untrustworthy
A long tracking URL full of a merchant name and an affiliate ID tells the reader they are about to be monetised. A link on your own domain does not.
Link cloaking
Turn a long affiliate URL into yoursite.com/go/something, with the nofollow sponsored attribute and a proper redirect applied for you, and the click data kept on your own server rather than a shortener's.
Why bother
None of them is hiding something from the reader. A cloaked affiliate link is still an affiliate link, and it should still be disclosed.
A long tracking URL full of a merchant name and an affiliate ID tells the reader they are about to be monetised. A link on your own domain does not.
When a programme closes or you move to a better one, you edit one link rather than hunting through years of posts for the old URL.
Clicks are recorded per link on your own server, so you can see which article is doing the work rather than guessing from a merchant dashboard.
Affiliate and paid links are supposed to carry rel="nofollow sponsored" and use a temporary redirect. Both are applied automatically rather than being your job to remember.
The free version
This is the whole cloaker, in the free plugin, with no licence key and no quota. Rendered from the same tier data the free-versus-Pro page uses, so these two pages cannot disagree.
The full split across every capability is on free versus Pro.
Doing it properly
Two different practices share this name and only one of them is a problem.
Shortening an affiliate URL to a link on your own domain, marked as sponsored, redirecting to the same destination every visitor and every crawler gets. Ordinary, common, and fine.
Showing search engines one destination and visitors another. That is deception rather than tidiness, it breaks search guidelines, and no plugin here does it.
Doing affiliate work specifically? The affiliate link cloaking use case goes further into tracking which posts earn.
Questions
Replacing a long affiliate or tracking URL with a short link on your own domain, usually something like yoursite.com/go/product. The visitor sees your domain, clicks it, and is redirected to the real destination. The point is a cleaner link you control, not hiding anything from the reader.
Yes, in this plugin. Branded links, the nofollow sponsored attribute and the 302 redirect are all in the free version, along with 13 capabilities in total. Pro adds keyword auto-linking, link scanner, csv import, advanced link analytics, which are conveniences on top rather than the cloaking itself.
Not when it is done the way search engines ask. Affiliate links should carry rel="nofollow sponsored" so they are not read as an endorsement passing authority, and a temporary redirect is the right kind. Both are applied automatically here. Cloaking becomes a problem when it is used to show search engines something different from what a visitor gets, which is a separate practice with the same name.
No, and that is the point of doing it on WordPress. A hosted shortener puts a third party between your reader and the merchant, charges monthly, and owns the click data. Running it on your own site keeps the redirect, the data and the domain with you.
With Pro. Export to CSV from ThirstyAffiliates or Pretty Links, then map the URL, name and slug columns in the importer. The cloaking prefix is configurable, so existing /go/ style links that people have already shared keep working.
The cloaker is free. Pro is $59 a year for 1 site and includes the complete Pro feature set, not just the link extras.
It takes about a minute, and it is the only way to find out whether the click data tells you anything useful about your own posts.