What is Commission?
The payment an affiliate earns for generating a sale, lead, or action. Commissions can be a percentage of the sale price, a flat fee per action, or a recurring payment for subscription products. Commission structures vary widely across affiliate programs.
Related Terms
Recurring Commission
A commission structure where affiliates earn ongoing payments for as long as the referred customer remains a paying subscriber. Common in SaaS and subscription-based affiliate programs, recurring commissions provide passive income that compounds over time.
Commission Rate
The specific percentage or dollar amount an affiliate earns per qualifying action. For example, a 30% commission rate means the affiliate earns 30% of each sale. Higher commission rates generally indicate more profitable affiliate programs.
Payout
The transfer of earned commissions from an affiliate program to the affiliate. Programs typically have a minimum payout threshold (e.g., $50 or $100) that must be reached before funds are disbursed. Payment methods include bank transfer, PayPal, check, or cryptocurrency.