Affiliate Commission Explained

Posted by on March 24, 2018

There are thousands of associate programs and all of them pay different responsibilities. When you search for the best affiliate program you may be confused by seeing so many commission schemes. This article will help you to understand how fair affiliate commission scheme looks like and how big commission you should expect.

While some affiliate programs offer fixed amount per sale, other come with commission schemes based on the percentage from the clients' purchases. The first way is usually used by companies which offer only one or a few products (eg web hosting services). Shops with thousands of products will rather use the second option.

Some affiliates managers use progressive commission scheme. Progressive affiliate commission scheme should motivate webmasters to send to the merchants as much visitors as possible because the more sales they generate the higher commission rate they receive. E. g. basic affiliate commission may be 10%, affiliates who generate at least 100 USD in sales per month get 12% and super affiliates generating over 1,000 USD in sales per month are rewarding by 14% commission.

OK, but how does fair affiliate commission look like? The numbers varies depending on the niche. If you promote expensive products like computers there are usually small margins for the merchants so you can expect commission rate between 1% and 3%. However, small commission calculated from high price leads to good profit. Most common shops like drugstores pay about 10% from the clients' orders. The highest rates offer the services like web hosting companies.

Most companies pay one time commissions. This means that if the customer will come back to the store later directly without clicking your affiliate link you will not get awarded for the second order. For this reason, I recommend to promote affiliate programs offering lifetime contracts. Good example of such program is a store where customers must register before they make the order. Every client coming from your website is assigned to you and you get paid for all future order made by him.



Source by Bedrich Omacka

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