Product & Commission
Program Scale
Commission Breakdown
Commission Rate vs. Profitability
Each row shows commission and profit at that rate. Green = profitable. Red = losing money.
How to Set the Right Affiliate Commission Rate
Setting an affiliate commission rate is one of the most consequential decisions in program design. Set it too low and affiliates won't be motivated to promote your product. Set it too high and your program eats into margins or runs at a loss.
The LTV-Based Commission Formula
Maximum sustainable commission = LTV x Safe ceiling %
Safe ceiling: 50% for SaaS (you need to retain half the LTV for costs and profit). For one-time products, use gross margin % as the ceiling.
Standard Commission Rates by Industry
- SaaS (B2B): 20-50% recurring. Enterprise SaaS often pays 10-20% with higher flat bonuses.
- SaaS (Consumer): 15-30% recurring. Lower because consumer CAC is typically lower.
- One-Time Products: $10-30 flat or 10-15%. Fixed amounts often work better than percentages.
- Digital Courses & Memberships: 30-50% recurring or 50% one-time.
- Ecommerce / Physical Products: 5-15% commission. Physical product margins are lower, limiting commission rates.
Tiered Commission Structures
Many successful programs use tiered rates that reward top performers:
- 0-10 sales/month: 20% commission
- 11-30 sales/month: 25% commission
- 31+ sales/month: 30% commission