This is how you choose the commission rate for your affiliates

When you talk about affiliate marketing, there is always a discussion about which commission rate is best for your affiliates. Everyone's opinion differs on this. Obviously, you're not giving the entire profit margin to affiliates, but how much can you extract yourself until it becomes less attractive? We will answer that in this article!

Commission for type of products

When talking about the commission, it is first important to look at the types of products involved. We usually distinguish three types of products:

• Physical products: With physical products, you do not calculate the full sales amount, but a percentage of the profit you make yourself.
• Services: When selling services, you take the sales price into account, which consists of the total costs per year divided over a number of services sold. You then calculate a profit margin on top of this, of which you can give affiliates a share.
• Online products: With digital products, it is common to give a very high commission. For example, with an e-book, affiliates sometimes even get more than 50%, since the affiliate does all the work.

In general, affiliates reach a target group that you would otherwise never have been able to reach yourself. So it's okay to be a little generous. It is therefore not strange to offer 50% of your profits to the affiliates. In principle, affiliate marketing is always a profit on top of your own marketing activities.

Types of commissions to give

There are also different types of commissions you can give and factors you need to take into account. First, you have direct and indirect commission. Direct commission is a commission on the products to which an affiliate directly refers a customer. Indirect commission is a commission on additional products that a customer purchases.

Not every affiliate program offers this, but it does make it a lot more interesting for an affiliate to receive a commission for this. You can set this yourself in our affiliate marketing program.

You can also opt for a recurring commission. This is a commission that is usually used for memberships. For example, you can give an affiliate a commission on a subscription monthly, quarterly or annually. This is usually not chosen, as it is an administrative burden. This is a very attractive commission for affiliates to receive.

Are you curious about the possibilities at AffiliateMNGR? Please contact us!