Commission
The payment earned by an affiliate or referrer when they successfully drive a defined conversion — the core incentive mechanism of any affiliate or referral program.
How Commission work
Commissions are calculated as either a percentage of the sale value or a fixed amount per conversion. When a referred visitor converts, the affiliate management platform records the commission and queues it for payout. Program owners can set different commission rates for different products, partner tiers, or performance levels.
Why it matters for your program
Commission structure is the single biggest factor in how attractive your program is to potential affiliates. Too low and you won't recruit quality partners. Too high and program costs erode margins. Getting the rate right — relative to your LTV, industry benchmarks, and competitors — is foundational to program health.
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