What is affiliate commission?

Affiliate commission refers to the compensation earned by affiliates for promoting and driving sales, leads, or other desired actions for advertisers or merchants.

When an affiliate promotes a product or service and a visitor referred by the affiliate makes a purchase or completes a specific action (such as signing up for a newsletter or filling out a form), the affiliate earns a commission for that referral. The commission amount is typically determined by the terms of the affiliate program and can vary based on factors such as the type of action, the value of the sale, and the commission structure.

Affiliate commissions can be calculated in various ways, including a percentage of the sale amount, a fixed amount per sale or lead, or a combination of these methods. The commission rate and structure are typically agreed upon between the advertiser or merchant and the affiliate when they join the affiliate program.

Overall, affiliate commissions serve as the primary incentive for affiliates to promote products or services and drive valuable actions for advertisers, contributing to the mutual benefit of both parties in the affiliate marketing relationship.