Commission

Commission is the payment an advertiser makes to a publisher for a sale, lead or other action the publisher drove. It is usually set as a percentage of the order value or as a fixed fee per action. Commission only becomes payable once the advertiser has validated the transaction, which is why publishers see earnings move from pending to approved.

How affiliate commission works

The advertiser sets its commission structure in its affiliate programme on a network such as Awin, CJ, Rakuten Advertising or Webgains. Retailers typically pay a percentage of sale. Finance, telecoms and subscription brands more often pay a fixed amount per sale, lead or sign-up, a model known as CPA (cost per action).

Most programmes do not pay one flat rate. On Awin, commission groups let an advertiser pay different rates by customer type or product, such as more for new customers than returning ones. Advertisers also agree publisher-specific rates, temporary increases for key trading periods and bonuses for hitting volume targets.

Commission is tracked when a customer clicks an affiliate link and converts within the cookie window. It then passes through validation, where the advertiser declines returns, cancellations and orders that break programme terms. Only approved commission is invoiced by the network and paid out.

Example of commission

Imagine a fashion retailer pays 10% commission on new customer orders and 6% on returning customer orders. A content publisher drives a £120 order from a new customer, earning £12, and a £50 order from a returning customer, earning £3. If the £50 order is returned, the retailer declines it, leaving the publisher with £12 of approved commission.

Now compare a broadband provider paying a fixed £50 per completed order. The publisher earns the same £50 whether the customer picks the cheapest package or the most expensive one. Fixed fees make earnings predictable, while percentage rates reward publishers who drive higher order values.

Why commission matters

For advertisers, commission is the main lever for directing publisher effort. Rates that are too low leave you invisible on the content and comparison sites that influence buying decisions. Blanket high rates can overpay for customers who would have bought anyway. The aim is to pay more for incremental value, such as new customers or high-margin products, and less where publisher influence is weaker.

For publishers, the headline rate is only half the picture. Take-home earnings depend on conversion rate, average order value and how many sales survive validation. That is why experienced publishers compare programmes on EPC (earnings per click) rather than on rate alone.

Commission vs payout

Commission is what a publisher earns on each transaction, while a payout is the payment the network actually sends. The two words are often used as synonyms, but a payout only happens once approved commission has cleared and passed the publisher's payment threshold.

For practical guidance on setting rates, tiers and commission groups, read our guide on how to structure affiliate commissions to drive performance.