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  • Affiliate Commissions
    • Set Default Commission for Program
      • Apply Flat Commission on Entire Order
    • Set Product Commission for Affiliates
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      • Bulk Import Product Commissions
    • Setup Affiliate Commissions
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    • Set Collection Commission for Affiliates
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      • Set Commission for First Time Customers
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    • Set Royalty Commissions for Affiliates
      • View Royalty Commission for Sale
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    • Set Commission Modifiers
      • Set Commission Modifier with Product Name
      • Set Commission Modifier with Order Value
      • Set Commission Modifier with First Time Customer
      • Set Commission Modifier with Customer Shipping Country
      • Set Commission Modifier with Coupon Code
      • Set Commission Modifier with Customer Email
    • Create Commission Groups for Affiliates
      • Edit Members in Commission Group
      • Set Default Commission Group
      • Set Default Commission for Group
      • Set Commission Rules for Group
      • Set Product Commission for Group
      • Set Collection Commission for Group
      • Set Multi Level Commission for Group
      • Set the Commission Calculation Method for Group
      • Set Multi Level Product Commission for Group
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      • Configure Compression in Multi Level Network for Group
      • Set Party Plans for Group
      • Set Commission Modifiers for Group
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      • Set Targets for Group
      • Group Configuration
        • Set Default Referral Link for Group
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        • Set Quick Links for Group
        • Add Instructions for Group Affiliates
        • Set Payment Methods for Group
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        • Set Connection Validity for Group
        • Select Dashboard Tabs for Group
        • Set Group Badge
        • Give Commission Only for New Customers in Group
        • Set Welcome Email for Commission Group
        • Set Coupon Template for Group
        • Set Custom Default Coupon for Group
        • Set Custom Media Categories for Group
        • Setup Affiliate Store for Group
      • Delete the Commission Group
      • Copy Commission Group
      • Link Group with Signup Page
        • Set Welcome Email for Group Signup Page
      • Link Group with Post Checkout Popup
      • Link Group with Membership Plan
      • Download Group Reports
    • Advanced Settings
      • Commission for Recurring Payments
        • Setup Connections Only for New Customers
        • Setup Connection Validity
        • Set Connection Validity with Sales
      • Disable Commission on a Product
        • Disable Commission on Tips
        • Disable Commission on Store Credit Purchases
      • Disable Commission on a Collection
      • Setup Rule Based Royalties
        • Setup Rule Based Royalties with Product Vendor
      • Setup Rule Based Tracking for Sales
        • Setup Tracking for Order Value
        • Setup Tracking for Customer Location
      • Commission on Subscription Renewals
  • Affiliate Coupons
    • Assign Coupons to Affiliates
      • Assign Custom Coupons
        • Manually Create Custom Coupons
      • Bulk Delete Coupons
    • Create Custom Coupons for Affiliates
    • Setup Referral Coupons
      • Automatically Generate Coupons
        • Change Discount Type
        • Change Discount Value
        • Set Coupon Usage Limits
        • Set Minimum Order Value
        • Limit Coupon Usage to Products
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        • Set Coupons to Combine
        • Enable Coupons to Apply to Subscriptions
        • Enable Free Shipping for Coupons
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      • Generate Coupons for Existing Affiliates
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    • Automatically Apply Discount Codes
      • Set Default Coupon Code
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      • Coupon Leak Detection
    • Setup Personal Coupons
      • Automatically Generate Personal Coupons
        • Set Discount Value for Personal Coupons
        • Set Discount Type for Personal Coupons
        • Set Coupon Usage Limit for Personal Coupons
        • Set Minimum Order Value for Personal Coupons
        • Limit Personal Coupons to Products or Collections
      • Generate Personal Coupons for Existing Affiliates
        • Bulk Update Personal Coupon Codes
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        • Issue Coupons to Affiliates for Personal Use
      • Create Personal Coupon Templates
    • Setup Gifts for Affiliates
      • Assign Gift to Affiliate
    • Advanced Settings
      • Set Coupon Code on Signup
      • Update Coupon Codes
      • Deactivate Affiliate Coupon Codes
      • Delete Coupon from GoAffPro App Code
      • Restore GoAffPro App Code
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  • Program Management
    • Manage Affiliates
      • Customize All Affiliates Table
      • Create an Affiliate Account
      • Approve/Reject an Affiliate Account
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      • View an Affiliate's Profile
        • Customize an Affiliate's Referral Link
        • Set an Affiliate's Referral Code
        • Assign Coupon to the Affiliate
        • Assign Multiple Coupons to the Affiliate
        • Assign Personal Coupon to the Affiliate
        • Resend Invitation Email to Affiliate
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        • Trigger Store Sync for Affiliate
        • Send Emails to Affiliate
        • Verify an Affiliate's Email Manually
        • Change an Affiliate's Group
        • Access an Affiliate's Dashboard
        • Create Product Link for Affiliate
        • Add Personal Message for Affiliate
        • Upload Files for the Affiliate
        • Add Tags for Affiliate
        • Add Private Note for Affiliate
      • Affiliate Profile Settings
        • Change Affiliate's Payment Method
        • Set Affiliate's Minimum Payout Amount
        • Set Affiliate's Commission Hold Time
        • Customize Affiliate's Referral Code
        • Change Affiliate's Profile Information
        • Change Affiliate's Password & Email Address
        • Set Affiliate's Notification Preferences
        • Send Postback/S2S Callback to the Affiliate
        • Set Affiliate Manager
      • Shorten an Affiliate's Referral Link
        • Customize the Shortened URL
        • Shorten Link Using Shopify Shortener
        • Shorten Link Using BigCommerce Shortener
      • Set Product Link as Affiliate's Referral Link
        • Shorten the Product Link
      • Set Standard Commission for Affiliate
        • Set Product Commission for Affiliate
        • Set Collection Commission for Affiliate
        • Set Royalty Commission for Affiliate
      • View Affiliate Transactions
        • Add Balance to an Affiliate's Wallet
        • Deduct Amount from Affiliate's Balance
        • Credit Bonus to Affiliate
      • Bulk Import Affiliate Accounts
        • Bulk Import File Format
    • Manage Sales
      • Customize All Sales Table
        • View Conversion Source of Sales
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      • View Affiliate Sale Details
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      • Assign Sale to an Affiliate
      • Create a Sale Manually
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        • Re-Assign Order to Affiliate
      • Bulk Import Affiliate Orders
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          • Correctly Format Bulk Import Orders File
    • Upload Digital Assets
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      • Add Link Assets for Affiliates
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  • Affiliate Payments
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    • Payment Settings
      • Setup Supported Payment Methods
        • Create Custom Payment Method
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      • Tax Implications for Affiliate Payments [US]
  • Affiliate Rewards
    • Set Target for Affiliates
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        • Create Test Product and Order
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  • Multi Level Affiliate Network
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    • Referral Link Configuration
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On this page
  • Commissions are an important part of affiliate marketing
  • Commission rates
  • GoAffPro makes it easier to set up commissions. In the Commissions tab, you have four types of commissions:
  • Default Commission
  • Product Commission
  • Collection Commissions
  • Royalty Commissions

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Commissions

How affiliate commissions work with the GoAffPro app

PreviousQuick SetupNextCoupons

Last updated 1 year ago

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In affiliate marketing, when an affiliate promotes your product through their referral link or code, they earn a commission on it. This system of marketing is based on the revenue-sharing model, where the merchant offers a financial incentive to people who promote their products.

Affiliates in your program can use social media platforms or blogs to promote your store products with their followers. The affiliate will earn a commission when any of their followers visit the store using their referral link and make a purchase. This model offers benefits to store merchants like a boost in sales and a wider reach.

Commissions are an important part of affiliate marketing

It is the money that the merchant pays to the affiliate for promoting their store and products. The affiliate benefits financially by earning a small commission on the sales they bring to the store.

Affiliates use their outreach by promoting products either on their website, which is dedicated to reviewing and promoting different products, or on social media platforms such as Facebook, Twitter, and Instagram or even reviewing products by making videos on YouTube or TikTok.

An example of commissions is:

If you have a product like a shirt that you sell in your store. Your objective is to sell as many shirts as you can. To drive sales up, you use GoAffPro, with which you set up an affiliate program for your store. Affiliates in your program will promote the shirt in your store, creating a higher demand for your shirt, and therefore, making more people buy it.

After a customer buys a shirt from your store using the referral link or code of the affiliate, GoAffPro records that sale and attributes it to them. The affiliate will earn a commission on this sale.

GoAffPro lets you handle commissions with ease, it lets you set commission rates as per your requirements.

The appeal of affiliate marketing is that it involves minimal risk, with no cost to set up, you pay the affiliate only when they get you sales on your store. If the margins are sufficient, then affiliate marketing virtually costs no money. It is significantly cheaper than traditional advertisements.

Commission rates

Commission rates heavily depend upon the product or service that an affiliate will be promoting. The rates mainly vary with the category and price of the product.

A great way to understand commission rates is by looking at how Amazon sets commission rates for its products:

Product Category

Commission Rate

Luxury Beauty

10.00%

Furniture, Home, Home Improvement, Lawn & Garden, Pets Products, Pantry

8.00%

Headphones, Beauty, Musical Instruments, Business & Industrial Supplies

6.00%

PC, PC Components, DVD & Blu-Ray

2.50%

Physical Video Games & Video Game Consoles

1.00%

Here we see that Amazon sets different commission rates for different categories of products, for more expensive products, the commission rates are higher compared to cheaper products.

High commission rates don't mean a higher revenue

Here, you have to calculate the revenue you earn from each affiliate's referral and set the commission rates accordingly.

Commissions are applied on product price, shipping charges, and taxes, however, they can be excluded when calculating the affiliate's commission.

GoAffPro makes it easier to set up commissions. In the Commissions tab, you have four types of commissions:

  1. Default Commission

  2. Product Commission

  3. Collection Commission

  4. Royalty Commission

Default Commission

GoAffPro lets you set up a default commission, which is the commission rate that applies to all the products and affiliates. It is the commission that will be applied by default. Any product purchased using an affiliate's referral will have this commission rate applied to it. The default commission will apply to all products except those, set with other commission types.

An example of default commission is, if you sell shirts and shoes in your store when you set the default commission rate to say 10%, the commission rate will be applied by default to all the shirts and shoes in your store. When a customer purchases any shirt or shoe in your store, the affiliate (whose referral the customer used) will earn a 10% commission from the sale.

When you set the default commission rate to say 5 percent. When an affiliate's referral is used to buy shoes worth $100, the affiliate, in this case, will earn $5 as a commission on it.

Product Commission

With product commissions, you can set different commission rates for particular products or affiliates. You have the choice of setting different commission rates for different categories of products. It is useful for setting up higher commissions on products that are more expensive, where your margins are high, and setting up a lower commission on products that are cheaper and have lower margins for you.

For Example, If you sell shirts and shoes on your website store, then with the product commission option, you can set a higher rate of commission for shoes that are generally more expensive than shirts. It will encourage affiliates to actively promote more expensive products that have a higher commission rate since they provide a higher financial incentive.

Here we have set up a 5% commission rate for shirts and an 8% commission rate for shoes, therefore, this will encourage affiliates to promote the shoe more actively. It will mean better margins for you (the merchant), with an increase in the number of sales of higher-priced products.

When the product commission rate is set to 5% for the shirt and 8% for the shoes and a visitor buys both of them. Then the affiliate referral used to buy the $50 shirt, will earn the affiliate a $2.5 commission, and for the $50 shoe, the affiliate will earn $4 in commission.

A higher rate of commission can also be set for products that have fewer sales, or for clearing the inventory of a product. Similarly, you can set up lower commission rates for products that are cheaper or have higher sales.

Collection Commissions

Collection commission is useful in setting up commissions for a collection or category of products. You can select the products that you want to add to a collection in your store and set a common commission rate for that whole collection.

It is useful in setting commissions for seasonal sales such as summer, and winter collections for clothes. It is also useful for setting up a higher rate of commission on products that need to be cleared from your inventory (like in a clearance sale). Affiliates will then be incentivized to promote these products.

For example, for collection commission, we can set up shirts such as these, in our store as a summer collection, where all of them will have a collection commission rate of 6%, this is useful in bringing newer stocks of products such as seasonal clothes and also clearing up earlier inventory.

Royalty Commissions

Royalty commissions are commissions earned on the sale of a particular product or collection that can be set for an affiliate. When a sale of that product or collection takes place, regardless of the affiliate who refers it, the affiliate (for whom the fixed commission is set) will earn a commission. It is also called a fixed commission.

For example, here we can set a royalty commission on the shirt for Affiliate A and the shoe for Affiliate B. When affiliate B's referral is used in the sale of the shirt or vice-versa, both affiliates A and B will earn a commission over that sale.

In specialized stores, that sell products where users can make designs or art submissions, royalty commissions are useful in getting these users (affiliates) commission every time there is a sale of their designed product.

You can check out instructions on how to use the commission tab below:

Commissions
Commissions
Types Of Commissions
Default Commissions
Product Commissions
Collection Commissions
Fixed Commissions