Of course, advertisers compensate their affiliates based on the revenue they generate for the business. This compensation is called commission.

By definition, the commission is a fee paid to an affiliate for causing a conversion (or other action) to take place.

In this article, I shall take you through different commission models. The two main models of commission in affiliate marketing are:

Fixed Commission

Fixed commissions are simply one-time payments made to affiliates for their conversions. These payments do not change regardless of the amount coming in through the conversion.

If you select this option, you will need to input the fixed commission amount you wish to be paying your affiliates for their conversions.

If you sell only a few specific products, each with a set price, or run a SaaS business, then fixed commissions may work well for your business.

Percentage Commission

Percentage commission, on the other hand, is when you set your commission rate as a percentage of each sale an affiliate makes.

If you select this commission type, you would be prompted to input the percentage you'd like to pay. The average affiliate commission is between 5% and 30%, depending on the cost of your products.

This commission type works best with eCommerce businesses that sell luxury products.

Recurring Commission (For SaaS)

This option is only available for SaaS advertisers. When you set this up, your affiliates would be paid a commission when they make a conversion and would continue to receive a fixed amount of commission each time that user renews their subscription until the selected end date.

Lifetime Commission (For SaaS)

This option is only available for SaaS advertisers. When you set this up, your affiliates would be paid a commission when they make a conversion and would continue to receive a fixed amount of commission each time that user renews their subscription.

Unlike the recurring commission, the affiliates continue to receive commissions for as long as the user keeps renewing their subscription. There is no end date applicable for the lifetime commission.

To set up your commission model, navigate through to your dashboard > settings > commission models

Or

Go to dashboard > campaign > create campaign > commission type