I'm somewhat tracking challenged myself but there are Fixers here who know it frontwards and backwards who can help you more than I can but there are a few of the basics I do know.
The postback passes conversion data back to your tracker. You insert your postback URL, which is supplied by your tracking platform, in the specified area of your network's platform. Every time you get a conversion, it lets the tracker know.
SubIDs provide important variable data to help you optimize your campaigns, i.e. keywords, amount, referral, time, target, etc. etc. These data will be generated via your tracking link, from the tokens you use when setting up your tracking for that campaign. This information can help you fine-tune and scale for profitable results.
Which brings us to tokens. You'll find tokens inside your offer's details. They are typically, s1, #s1#, [subid],aff_sub1, something similar...it's different on different platforms. If necessary, ask your AM for help with this. The token is what assigns the subID its value, it's basically the name of the subID and is tacked onto the end of your tracking URL. Example link: www.your-tracker-platform.com/tracker.html?&SUBID=#s1# <<-- token
How you set things up depends on the platforms you're using. Which network and tracker are you going to use? That will help others to help you.
There is lots of good reading on here, plus you can check out newbie411.com . It's a free guide from the forum's owner, Oliver Kenyon, a.k.a. K.
I think I did something of a muddled job of explaining but I know someone else will come along and clarify further for you.
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