Setting Commission Rates

Configure commission structures for your affiliate program

Table of Contents

Setting Commission Rates

Commission rates determine how much affiliates earn from each sale. AffiliateBase supports flexible commission structures to fit your business model.

Commission Types

Percentage-Based

Affiliates earn a percentage of each sale:

  • 20% commission on a $100 sale = $20 earned
  • Works well for varying product prices
  • Scales with order value

Fixed Amount

Affiliates earn a fixed amount per sale:

  • $25 per sale regardless of order value
  • Predictable costs for you
  • Simple for affiliates to understand

Setting Default Rates

At Campaign Level

  1. Go to Campaigns in your dashboard
  2. Select a campaign
  3. Set Commission Rate (percentage or fixed)
  4. Save changes

All affiliates in this campaign use this rate by default.

Example Configuration

CampaignCommission TypeRate
Monthly PlanPercentage20%
Annual PlanPercentage30%
Lifetime DealFixed$50

Individual Affiliate Rates

Override the default for specific affiliates:

  1. Go to Affiliates
  2. Click on an affiliate
  3. Go to their Settings
  4. Set custom commission rate
  5. Save changes

Use cases:

  • Top performers earn higher rates
  • New affiliates start lower
  • Special partnership agreements

Recurring Commissions

For subscription products, choose between:

One-Time Commission

Affiliate earns only on the first payment:

  • $100/month subscription, 20% commission
  • Affiliate earns $20 once

Recurring Commission

Affiliate earns on every payment:

  • $100/month subscription, 20% commission
  • Affiliate earns $20 every month the customer stays

Configure in Campaigns → Commission Settings → Recurring

Commission Timing

When Commissions Are Created

Commissions are created when:

  1. Customer completes a purchase
  2. Stripe webhook notifies AffiliateBase
  3. Purchase matched to affiliate referral
  4. Commission calculated and recorded

Commission Due Date

Commissions become “due” after your configured period:

  • Default: 30 days after purchase
  • Purpose: Allow for refund window
  • Configurable per campaign

Commission States

StateDescription
PendingCreated but not yet due
DueReached due date, ready for payout
PaidIncluded in completed payout
VoidedCancelled (e.g., refund occurred)

Best Practices

Competitive Rates

Research your industry:

  • SaaS: 15-30% typical
  • Digital products: 20-50% typical
  • Physical products: 5-15% typical

Clear Communication

Tell affiliates:

  • Exact commission percentage/amount
  • One-time vs recurring
  • When commissions are paid
  • Any conditions or limits

Tiered Structures

Consider rewarding top performers:

TierMonthly SalesCommission
Bronze0-1020%
Silver11-2525%
Gold26+30%

Implement with individual rate overrides.

Product-Specific Commissions

Different products can have different rates:

  1. Create separate campaigns for each product/tier
  2. Set appropriate commission for each
  3. Assign affiliates to relevant campaigns

Example:

  • Starter Plan Campaign: 20% commission
  • Pro Plan Campaign: 25% commission
  • Enterprise Campaign: $100 fixed

Handling Edge Cases

Discounted Purchases

Commission calculated on:

  • After discount: More fair, lower commission
  • Before discount: Higher commission, more generous

Configure based on your preference.

Refunds

When a customer refunds:

  1. Commission is automatically voided
  2. No payout made for voided commissions
  3. If already paid, deducted from future payouts

Partial Refunds

For partial refunds:

  • Commission may be recalculated
  • Or voided entirely (your configuration)

Changing Commission Rates

For New Sales

Rate changes apply to future sales immediately.

For Existing Commissions

Existing commissions keep their original rate:

  • Commission created at 20% stays 20%
  • Even if you later change to 25%

Communicating Changes

When changing rates:

  1. Notify affiliates in advance
  2. Explain the reason
  3. Consider grandfathering top performers
  4. Update documentation

Calculating Your Rates

Consider Your Margins

If your product costs $100:

  • COGS/delivery: $20 (20%)
  • Operating costs: $30 (30%)
  • Profit margin: $50 (50%)

A 20% commission ($20) comes from your profit, leaving $30.

Customer Lifetime Value

For subscriptions:

  • Average customer stays 12 months
  • $100/month × 12 = $1,200 LTV
  • 20% of first month ($20) = 1.7% of LTV

Recurring commissions cost more but incentivize quality referrals.

Troubleshooting

Commission Not Created

  1. Verify purchase was tracked
  2. Check referral attribution exists
  3. Confirm webhook delivered
  4. Review campaign settings

Wrong Commission Amount

  1. Verify rate configuration
  2. Check for individual overrides
  3. Confirm discount handling
  4. Review calculation logic

Next Steps