Recurring Commission

What is a recurring commission?

A recurring commission is a type of affiliate commission where an affiliate earns repeated payouts for as long as the customer they referred continues paying for a product or service.

This commission model is especially common in subscription-based businesses, such as SaaS tools, memberships, online courses, subscription boxes, and recurring service plans. Instead of earning a one-time payment for a referral, the affiliate earns commission again and again when the referred customer renews.

How recurring commissions work?

In affiliate marketing, recurring commissions are usually tied to ongoing customer payments. For example, if an affiliate refers a customer to a software platform that costs $100 per month, and the affiliate earns a 20% recurring commission, they would receive $20 every month that customer stays subscribed.

If the customer stays for 12 months, the affiliate earns $240 from one referral. If the customer cancels after three months, the commission stops after those three payments.

Recurring commissions can be structured in different ways. Some programs offer lifetime recurring commissions, meaning the affiliate earns for as long as the customer remains active. Others limit recurring payouts to a set period, such as the first 6 months or 12 months.

Recurring commissions are attractive to affiliates because they create the potential for ongoing passive income. A single successful referral can continue generating earnings over time, which makes the program more appealing than a one-time payout.

Example of a recurring commission

A subscription meal-planning app charges customers $30 per month. The company offers affiliates a 25% recurring commission.

If an affiliate refers one customer, they earn $7.50 per month for that customer. If they refer 20 customers who all remain subscribed, the affiliate earns $150 per month in recurring commissions.

In short, recurring commissions reward affiliates over time and are a strong fit for businesses with subscription pricing, memberships, or repeat billing models.