What is Commission?
Definition
The payment an affiliate earns for driving a qualified action such as a sale, lead, or sign-up. Commission structures vary from flat fees to percentage-based payouts and often include tiered bonuses for top performers.
Related Terms
A pricing model where the advertiser pays only when a specific action is completed, such as a form submission, app install, or purchase. CPA aligns incentives because both advertiser and affiliate benefit from genuine conversions.
A performance-based model where the affiliate earns a commission only when an actual sale is completed. CPS minimizes risk for advertisers while rewarding affiliates who can drive high-intent buyers.
A commission structure where the affiliate receives an ongoing percentage of the revenue generated by referred customers for the lifetime of those accounts. Rev share is common in SaaS and iGaming affiliate programs.
The average revenue an affiliate earns per click sent to an offer. EPC is calculated by dividing total commissions by total clicks and is the primary metric for comparing offer profitability across different networks.