Success-based remuneration for a placement. In affiliate marketing, the publisher receives a commission for each brokered sale or lead – as a percentage of revenue or as a fixed amount.
Also called: commission, remuneration
A commission is a remuneration that is paid only if a mediation was successful. The principle is known from many industries – from real estate agents to insurance representatives to sales. In affiliate marketing, a publisher receives a commission if a sale, a Lead or another agreed action comes about via his recommendation.
What types of commission are there?
- Percentage commission: a fixed share of revenue, about 8% of the cart value. Typical for online shops (CPS).
- Fixe commission: a fixed amount per promotion, about 25 € per concluded contract (CPL or CPO).
- Staged commission: The rate increases with revenue – for example, 6 % to 10,000 € monthly turnover and 8 % above.
- Lifetime commission: Also follow-up purchases of the recruited customer are paid (Lifetime commission).
How is the commission calculated?
Commission = net turnover × commission rate
An example: A customer buys via your link for € 119 including VAT. Net sales are 100 €. At a commission rate of 8% you will receive €8 commission. Most partner programs charge the commission on the net shopping cart without shipping costs and taxes. Cancelled or returned orders will not be reimbursed.
How high is a usual commission?
This depends heavily on industry and margin. Electronics often offer only 2 to 5%, fashion and beauty 8 to 15%, digital products and software sometimes 20 to 40%. For financial products and contracts, fixed amounts per trade are common. Current values by industry can be found in the Partner Program Directory.
When will the Commission be paid out?
After the purchase, a commission is initially “open”. Only after the release by the advertiser - usually after expiration of the right of return - is it confirmed. The network then pays out confirmed commissions collected, often monthly from a minimum amount.
Commission or salary?
Unlike a fixed fee, the commission bears the risk of the intermediary: he earns only if successful. For this, the income is open to the top. For companies, this means predictable costs per sale – one of the main reasons why affiliate marketing is so common.