Percentage Commission

What is a percentage commission?

A percentage commission is an affiliate commission model where affiliates earn a percentage of each sale they refer.Instead of paying a fixed dollar amount, the business pays the affiliate a portion of the sale value.

For example, if an ecommerce store offers a 15% commission and an affiliate refers a $100 sale, the affiliate earns $15.

This is one of the most common commission types in affiliate marketing because it is simple, flexible, and easy to understand.

How percentage commissions work

‍Percentage commissions are usually calculated from the order subtotal or sale amount. The exact calculation depends on the affiliate program’s rules. Some businesses calculate commission before taxes and shipping, while others may exclude discounts, returns, or certain products.

For example:

• Product price: $200
• Affiliate commission rate: 10%
• Affiliate earns: $20

If the customer buys multiple items and the eligible order total is $500, the affiliate would earn $50 at the same 10% rate.Percentage commissions are often used by ecommerce stores, digital product sellers, online course creators, SaaS companies, and service businesses.

Percentage commissions scale naturally with the sale amount. If an affiliate refers a small order, the payout is smaller. If they refer a larger order, the payout increases.

This makes the model easier for businesses to manage because commissions stay tied to revenue. It can also motivate affiliates to promote higher-value products, bundles, or larger purchases.

Example of a percentage commission

‍An online clothing store offers affiliates a 12% commission on every referred sale.

If an affiliate promotes the store and sends a customer who buys $150 worth of clothing, the affiliate earns:

‍$150 × 12% = $18 commission

If another customer buys $400 worth of products, the affiliate earns:

$400 × 12% = $48 commission

The higher the order value, the more the affiliate earns.