What Commission Rate
Should You Offer?

It depends on your industry, product price, and profit margins. SaaS companies typically offer 20-30% recurring commissions, while e-commerce ranges from 5-15%. Use this calculator to get a personalized recommendation based on your specific business metrics.

For subscription/SaaS products, recurring commissions are strongly recommended. They keep affiliates motivated long-term and attract higher-quality promoters. Studies show programs with recurring commissions attract 3x more affiliates than one-time programs.

Affiliates consider three factors: commission percentage, product price (which determines dollar-per-sale), and conversion rate. A 30% commission on a $10/mo product ($3/sale) is less attractive than 15% on a $100/mo product ($15/sale). Higher-priced products can afford lower percentages.

Yes, but be careful. Lowering rates can cause affiliates to leave. It's better to start conservative and raise rates as you prove ROI. You can also offer tiered commissions — higher rates for top performers — to reward your best affiliates without increasing costs across the board.

Signs of a low commission rate include: difficulty recruiting affiliates, low affiliate engagement, affiliates promoting competitors instead, and high affiliate churn. Compare your rate to industry benchmarks using this tool. If you're below the average, consider increasing or adding bonuses.

Percentage commissions (e.g., 25% per sale) scale with your pricing and are most common for SaaS. Fixed commissions (e.g., $50 per sale) provide predictable costs and work well for variable-priced products. Many programs offer a combination — fixed bonuses for milestones plus percentage on each sale.