What is affiliate commission?

Affiliate commission refers to the compensation paid to affiliates for promoting and driving sales or other desired actions for a merchant's products or services. It is a key component of affiliate marketing, where affiliates earn a commission for each successful referral or sale they generate through their marketing efforts.

The commission amount can vary depending on the affiliate program's terms and conditions, as well as the specific affiliate marketing model being used (such as Cost Per Sale, Cost Per Action, etc.). Commissions are typically calculated as a percentage of the sale amount, a fixed amount per sale or action, or based on other predefined criteria, such as the number of clicks or leads generated.

Affiliate commissions provide incentives for affiliates to actively promote the merchant's offerings and drive conversions, as they are rewarded based on the performance of their marketing efforts. The commission structure is agreed upon between the merchant and the affiliate, often outlined in an affiliate agreement or contract.

Overall, affiliate commissions play a crucial role in incentivizing affiliates to participate in affiliate marketing programs and can vary widely depending on factors such as the industry, product or service being promoted, and the affiliate's marketing strategy and effectiveness.