Guide
Affiliate commission structures explained
The commission structure is the deal you offer affiliates. Get it right and recruiting is easy; get it wrong and either no one signs up or your margins suffer. Here are the main choices.
Percentage vs flat bounty
A percentage of the sale (e.g. 25%) scales with order value and feels fair to both sides. A flat bounty (e.g. $50 per paying customer) is simple and predictable, and works well when your prices are consistent. Percentage suits variable pricing and higher-ticket plans; flat suits a single popular plan.
One-time vs recurring
One-time pays once when the customer first converts. Recurring pays a share of every renewal for some period (or for the customer's lifetime). Recurring is a strong incentive for affiliates promoting subscription SaaS — they share in retention — but it is a larger long-term cost, so model it against your churn and LTV.
Tiered and custom rates
You do not have to offer everyone the same deal. A common pattern is a program-wide default with per-affiliate overrides for top performers or strategic partners. Tiered rates (higher % above a sales threshold) can motivate volume, at the cost of some complexity.
The attribution window
Pair any structure with an attribution window — how long after a referral click a purchase still counts. 30–90 days is typical. Longer windows reward affiliates for slow-converting referrals; shorter windows reduce contested credit.
Frequently asked questions
Should I offer recurring or one-time commissions?
Recurring is more attractive to affiliates for subscription products and aligns them with retention, but costs more over time. One-time is simpler and caps your cost per customer. Many SaaS start one-time and add recurring for key partners.
Can I set different rates per affiliate?
Yes. With affilut you set a default rate and override it per affiliate — useful for rewarding your best performers.