Affiliate marketing glossary
Commission
In one sentence
Commission is the amount an advertiser pays an affiliate for a qualifying action, expressed either as a percentage of order value or as a flat amount per action.
Percentage commission scales with basket size and suits categories with variable order values, such as fashion and home. Flat commission, sometimes called a bounty, suits subscription and lead-generation products where the value of a customer is consistent.
Headline rates are often maximums. Rates frequently vary by product category, exclude sale items, and are reduced on gift cards and heavily discounted lines.
Common questions
Commission, answered
Is a higher commission rate better?
Only on identical baskets, which is rare. A 4% rate on a $400 average order pays $16 and a 10% rate on a $50 order pays $5. Rate is one of three numbers that decide earnings, alongside average order value and conversion rate, and it is the only one most directories publish, which is why it is the most over-weighted figure in affiliate marketing.
Why is my commission lower than the advertised rate?
Usually because the rate advertised is a maximum. Rates commonly vary by product category within the same program, drop on discounted lines, and are excluded entirely on gift cards. The rate that applies is the one shown in the panel at the time the link was generated.
When does commission actually get paid?
After the advertiser validates the sale, which is typically 30 to 60 days from the transaction and longer in travel, and then on the next payment run once your balance clears the threshold. Commission you can see is not the same as commission you can withdraw.
Can an advertiser change its commission rate?
Yes, at any time and without notice, and rates move around seasonal peaks in both directions. Content built around a specific rate should be treated as content built on a term the advertiser controls.
Keep reading
More from the glossary
Every term here is written to answer one question completely, then point at the next one worth asking.
Sub-affiliate network
A sub-affiliate network is a company that holds approved relationships with affiliate programs on major networks and lets smaller publishers and creators promote those programs under its account, sharing the commission it receives.
Affiliate network
An affiliate network is a platform that connects advertisers running affiliate programs with publishers who promote them, handling tracking, reporting and payment between the two.
EPC (earnings per click)
EPC is the average commission earned per click sent to an advertiser, calculated as total commission divided by total clicks over a given period.
Cookie window
The cookie window is the length of time after a click during which a resulting purchase is still credited to the affiliate, commonly ranging from 24 hours to 90 days.
Last-click attribution
Last-click attribution credits the entire commission to the final affiliate link clicked before a purchase, which is the default model across almost all affiliate networks.
Attribution
Attribution is the process of determining which marketing touchpoint receives credit for a conversion, and therefore which affiliate is paid.
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