Types of Affiliate Commissions

Prev Next

1. % Net

Description:
Commission is calculated based on actual profit margins after subtracting core costs from revenue. This ensures affiliates earn only from profitable sales.

Formula:

  • If discount ≤ 50%:
    (Selling Price - Cost to Business - Discount) × Commission Rate

  • If discount > 50%:
    (Selling Price - Cost to Business) × Commission Rate

Notes:

  • This model accounts for cost structure.

  • Affiliate earns only when there’s real profit.


2. % of Medication Selling Price

Description:
Commission is a percentage of the discounted medication price. This model is simpler but doesn’t factor in costs or profitability.

Formula:

  • If discount < 100%:
    (Medication Selling Price – Discount) × Commission Rate

  • If discount = 100%:
    Commission = $0

Notes:

  • Based only on what the customer pays (post-discount).

  • Payout is purely tied to what the customer paid (post-discount) for the medication.


3. Fixed Amount per Order

Description:
A fixed commission is paid for each qualified sale, independent of price, cost, or discount.

Formula:
Commission = Fixed Payout Value

Notes:

  • Predictable and easy to manage.

  • Ideal for campaigns with consistent order types.


🧮 How Is Business Commission Calculated?

Business commission is calculated the same way for all affiliate commission types.

Formula:
Business Commission = Selling Price – Cost Price – Discount – Transaction Fee – Processing Fee – Affiliate Commission

Notes:

  • Helps assess profitability of each order after all deductions.

  • Remains constant across different affiliate structures.