Key takeaways
- The four core models are percentage of sale, flat per-action, recurring, and tiered/performance-based.
- Percentage works for variable-priced products; flat per-action suits leads and signups.
- Recurring commission aligns affiliates with retention — powerful for subscriptions.
- Tiers reward your best partners and motivate volume without overpaying everyone.
- Structure should follow your business model and margin, not a competitor's headline rate.
How you structure commission decides which partners you attract, what behaviour you reward, and whether the program makes money. Get it right and affiliates pursue exactly the outcomes you care about; get it wrong and you overpay for low-value actions or fail to attract serious promoters. Here are the models that work and when to use each.
What are the main affiliate commission models?
There are four core models: percentage of sale, flat per-action, recurring, and tiered. Most programs use one as a base and layer on tiers or bonuses to reward top performers.
Percentage of sale
Pay a percentage of each order's value. This is the most common model and works well when order values vary, because the payout scales with the revenue generated. It naturally motivates affiliates to drive higher-value purchases.
Flat per-action (CPA / CPL)
Pay a fixed amount for a defined action — a qualified lead, a signup, or a sale. Flat rates are predictable and ideal when your prices are uniform or when you value an action (like a trial start) more than immediate revenue. The risk is paying for low-quality actions, so define "qualified" tightly.
Recurring commission
Pay a commission on every renewal for a subscription, either indefinitely or for a capped period (e.g. 12 months). Recurring commission is the standout model for SaaS because it aligns affiliates with retention: they earn more when the customers they referred stick around, so they're incentivized to send good-fit users.
Tiered and performance-based
Raise the rate as a partner drives more volume — e.g. 15% up to 10 sales/month, then 20% beyond that. Tiers reward your most productive partners and give everyone a reason to push harder, without paying a premium rate to partners who only convert occasionally.
How does your business model decide the structure?
Your business model should pick the structure for you, because the right model mirrors how you actually make money. A subscription business earns over time, so it rewards retention with recurring commission; a one-off-purchase business earns at the point of sale, so a percentage or flat rate fits better.
- Subscription / SaaS: recurring commission (often capped at 6–12 months) aligns affiliates with retention.
- One-off digital products: a percentage of sale scales the payout with the order value.
- Lead generation: a flat per-lead rate, with a tight definition of a qualified lead to avoid paying for junk.
- Fixed-price products with uniform margins: a flat per-sale amount keeps payouts simple and predictable.
Don't confuse multi-tier with tiered
Tiered commission means one partner's rate rises with their own performance. Multi-tier (sub-affiliate) means a partner also earns a smaller cut when affiliates they recruited make sales. They solve different problems — performance vs. network growth — and Afflio supports both.
How do you combine models without overpaying?
Pick one base model that matches your pricing, then add targeted incentives instead of raising the base rate for everyone. The cleanest structures keep a sustainable base and reserve extra reward for behaviour you want more of.
- Choose a base: percentage for variable pricing, flat for uniform pricing, recurring for subscriptions.
- Add a volume tier so high performers earn a higher rate on their incremental sales.
- Layer time-boxed bonuses for launches or specific products rather than permanently inflating the base.
- Cap or step down recurring commission after a period to protect long-term margin.
Your commission structure is a strategy document in disguise. Whatever you pay the most for is what your affiliates will optimize their entire effort around.
What is the most common affiliate commission model?
Percentage of sale is the most common, because it scales the payout with order value and suits products with variable prices. Flat per-action and recurring models are also widely used depending on whether you value uniform actions or subscription retention.
Is recurring commission worth it for SaaS?
Usually yes. Recurring commission aligns affiliates with retention — they keep earning as the customers they referred renew — which encourages them to send well-fit users rather than chasing one-off signups. Many programs cap it at a fixed number of months to protect margin.
Should every affiliate get the same commission rate?
Not necessarily. A flat base rate is simplest, but tiered or performance-based rates let you reward your highest-volume partners more without overpaying occasional ones. Many programs combine a sustainable base with volume tiers and time-boxed bonuses.