Examples of Different Types of Commission Rate Settings

An overview of different types of commission rates possible to set up on the Commission Factory platform

The Commission Factory platform has the flexibility to create and implement commission rules that align with your affiliate program objectives. Commission rules can be set using one or a combination of program parameters and conditions, however, please check with your Commission Factory account manager to confirm if these are available for your program.

Commission rules are grouped into four main areas of which multiple options are available. Below is an overview of some of the most common commission rules in place with advertisers, based on the four main parameter types.

 

Affiliate Commission Settings

Commission rules can be set up to incentivise affiliates on your program. This includes setting up targets for your affiliates by the number of transactions or sale value. For example:

“If the sale value is equal or greater than $50K over the past 30 days

Commission rate % = 15%”

 

Traffic Commission Settings

If you wanted to implement a commission structure based on the types of affiliates you have in your program or the type of traffic they are sending to your program, you can set up rules to manage these. Common examples include the following:

“If Website Type Is Coupon Site”

Commission rate % = 7%

 

“If Action Type is Impression”

Commission rate % = 2%

 

“If Website Type Is Blog Site and Total Sale Value is equal to or greater than $1K”

Commission rate % = 12%

 

Transaction Commission Settings

Transaction type commission rules allow setting rates that may be aligned to a program objective, including new customer acquisition, help manage your coupon strategy, or to reward affiliates who achieve a certain sale value threshold. Common examples include the following:

“If Customer Type is New Customer”

Commission rate % = 12%

 

“If Customer Type is Return Customer”

Commission rate % = 7%

 

“If Coupon Is Not in Program”

Commission rate % = 3%

 

Cart Item Commission Settings

Cari item rules allow detailed commission rule setting at a brand, category, sub-category or SKU detail level. Common examples include the following:

“If Brand is equal to Apple”

Commission rate % = 1%

 

“If Category is equal to Sporting Accessories”

Commission rate % = 5%

 

“If SKU is equal to 10204563”

Commission rate % = 10%

Please ensure your program tracking provides cart item information, in order to enable these rules.

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A program manager has so many different options to help set up their commission rules and align these with their program strategy and objectives.

We don’t recommend setting up commission rules that are overly complex or which may be perceived as unfair from an affiliate perspective. If you have any queries on commission rules, please reach out to your dedicated account contact at Commission Factory.

Please note that changes to your commission rules can only be actioned by Commission Factory and that all affiliates on your program be provided with 7 days notice of any impending commission rule change.