What Is Commission (Affiliate)?
In affiliate marketing, a commission is the fee the advertiser (the brand selling a product or service) agrees to pay the publisher (the affiliate promoting that product) each time a specific, measurable action is completed through the affiliate’s unique tracking link. That action is defined upfront in the programme terms and is most commonly a sale, but it can also be a lead form submission, a phone call, an app install, or even a free trial sign-up. The commission is the financial mechanism that makes the entire affiliate relationship work, because it aligns the interests of both parties: the publisher earns only when they deliver value, and the advertiser pays only when they receive value.
Commission structures come in several forms. The most widely used in e-commerce is the percentage-of-sale model, where the affiliate receives a share of the order value each time their referral converts. A travel affiliate promoting a lodge in the Drakensberg might earn 8% of every booking they refer, for example. The flat-rate model is common in lead generation and financial services, where the advertiser pays a fixed rand amount per qualified lead regardless of the eventual deal size. A short-term insurance company might pay R150 per completed quote submission, making it easy for both parties to forecast earnings and costs. Some programmes combine both approaches, offering a small flat fee for a lead plus a percentage commission if that lead converts to a paying customer.
The commission rate a brand chooses has a direct impact on the quality and volume of affiliates willing to promote it. Too low and high-traffic publishers will simply not prioritise the offer. Too high and the programme becomes unprofitable, especially if the conversion rate on the landing page is weak. The calculation that governs healthy commission setting is straightforward.
Maximum Sustainable Commission = (Average Order Value x Gross Margin %) x Target Affiliate Cost Share
Example: AOV R800 x 40% margin = R320 gross profit per order. Allocating 25% of that gross profit to affiliates gives a maximum commission of R80 per sale, which equals 10% of the R800 AOV.
Understanding cookie duration is inseparable from understanding commissions. When a visitor clicks an affiliate link, a tracking cookie is placed in their browser. If that visitor purchases within the cookie window (commonly 30 or 60 days), the affiliate receives credit for the sale and earns the commission. A longer cookie window is more generous to the affiliate and tends to attract publishers who promote considered purchases, such as furniture, insurance, or software, where the customer research cycle is longer than a single day.
Commission (Affiliate) In Practice
Consider a South African online retailer selling premium skincare products at an average order value of R650. They launch an affiliate programme through a local affiliate network and offer a 12% commission with a 30-day cookie. A lifestyle blogger in Cape Town with 45,000 monthly readers joins the programme, places affiliate links in a product review post, and drives 200 clicks in a month. If 4% of those visitors purchase (a realistic conversion rate for a warm content audience), that is 8 sales at R650 each, generating R5,200 in revenue for the retailer. The blogger earns R624 in commission. The retailer’s effective cost per acquisition is R78 per order, well within margins that still deliver a strong ROAS after payout.
South African businesses entering performance marketing through affiliate channels frequently underestimate how much commission competitiveness matters relative to category peers. A fintech business offering a 1% commission on loan referrals will struggle to attract quality publishers when a competitor is paying R200 per approved application. Regularly auditing what comparable programmes pay, both locally and on international networks, is a practical discipline. It is also worth distinguishing between the commission paid to content affiliates (bloggers, comparison sites, review publishers) and that offered to coupon affiliates or cashback sites, since the latter typically drive higher volume at lower margins and may warrant a separate, lower rate to protect long-term profitability.
FAQ
What commission rate should a South African advertiser offer affiliates?
South African advertisers typically offer between 5% and 20% of the sale value for physical products, and between 20% and 40% for digital products or services. The right rate depends on your profit margin, average order value, and how competitive your affiliate programme needs to be to attract quality publishers.
What is the difference between a flat-rate commission and a percentage commission?
A flat-rate commission pays the affiliate a fixed rand amount per conversion regardless of order size, which is common for lead generation. A percentage commission pays a share of the sale value, which rewards affiliates more when customers spend more and is common in e-commerce and subscription businesses.