Commission Rates: Percentage vs Fixed

Commission rates determine how much affiliates earn from each sale or lead. You can choose between percentage-based commissions (a percentage of the sale amount) or fixed amount commissions (a set dollar amount per sale).

• Percentage: Affiliates earn a percentage of each sale (e.g., 20% of $100 = $20)
• Fixed: Affiliates earn a set amount per sale regardless of sale value (e.g., $50 per sale)
• Both types work with First Purchase and Recurring commission types
• Lead Generation always uses fixed amounts

Overview

The commission rate structure you choose affects how much affiliates earn and how predictable your costs are. Each approach has advantages depending on your product pricing, business model, and goals.

You can set commission rates when creating or editing a program. The rate applies to all affiliates in that program unless you create custom rates for specific affiliates.

Percentage-Based Commissions

With percentage-based commissions, affiliates earn a percentage of each sale amount. The commission automatically scales with the sale value.

How it works: If you set a 20% commission rate and a customer purchases a $100 product, the affiliate earns $20. If the same customer purchases a $200 product, the affiliate earns $40.

Best for:

• Variable pricing: Products with different price points or tiers
• Upsells and add-ons: When affiliates should earn more on higher-value sales
• Fair compensation: Ensures affiliates earn proportionally to the value they bring
• E-commerce stores: Products with wide price ranges
• Recurring revenue: Percentage scales with subscription amounts

Fixed Amount Commissions

With fixed amount commissions, affiliates earn the same dollar amount regardless of the sale value. This provides predictable costs and simpler calculations.

How it works: If you set a $50 fixed commission and a customer purchases a $100 product, the affiliate earns $50. If the same customer purchases a $200 product, the affiliate still earns $50.

Best for:

• Consistent pricing: Products with similar or identical prices
• Predictable costs: When you need to budget exact commission amounts
• Lead generation: Paying for qualified leads rather than sales value
• High-margin products: When you want to cap commission costs
• Simple programs: Easier for affiliates to understand their earnings

When to Use Each

Choose percentage-based commissions when:

• Your products have variable pricing or multiple tiers
• You want to incentivize affiliates to promote higher-value options
• You offer upsells, add-ons, or upgrades
• You have recurring revenue and want commissions to scale with subscription amounts
• You want fair, proportional compensation for affiliates

Choose fixed amount commissions when:

• Your products have consistent pricing
• You need predictable commission costs for budgeting
• You're running a lead generation program
• You want to cap commission costs on high-margin products
• You prefer simple, easy-to-understand commission structures

Examples

Here are real-world examples of how each commission type works:

Switching Between Types

You can change commission rate types (percentage vs fixed) anytime in your program settings. However, keep in mind:

• Existing commissions: Already-earned commissions remain unchanged
• New sales: The new rate applies to all future sales
• Affiliate communication: Notify affiliates when you change commission structures
• Testing: Consider A/B testing different rates to see what works best