Commission in affiliate programmes: models, cookies and how to compare
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Commission is payment for a result: not for hours worked, but for a sale, a sign-up or another action that you brought in. In affiliate programmes it varies a great deal, and two offers with the same “10 %” can mean entirely different money.
This article covers which commission models exist, what the abbreviations CPS, CPA, CPL and CPC mean, why cookie duration and the attribution rule matter no less than the percentage, and how to compare two programmes with numbers rather than promises.
In short
- A percentage without context says nothing: what matters is the amount it is calculated on and how much the average purchase costs.
- The most common model is a percentage of the sale (CPS). Others: a fixed amount, payment per sign-up (CPL), per action (CPA), per click (CPC), revenue share.
- Cookie duration determines for how long after the click a purchase is still attributed to you – from a day to several months.
- Earnings per click is the only number with which two programmes can be compared honestly.
Commission models
| Model | What is paid for | Where it is found | What to look out for |
|---|---|---|---|
| CPS (cost per sale) – a percentage of the sale | A share of the purchase amount | Shops, tickets, digital products | On the price with or without VAT, whether delivery is included |
| Fixed amount per sale | The same amount for every order | Subscriptions, services | Whether payment is per order or per unit |
| CPL (cost per lead) | For a completed form or a sign-up | Insurance, financial services, training | Which sign-up counts as qualifying |
| CPA (cost per action) | For an agreed action: an installed app, a first deposit, a trial period | Apps, service platforms | Whether the action has to be completed or starting it is enough |
| CPC (cost per click) | For a click | Price comparison websites, advertising networks | How fake clicks are rejected |
| Revenue share (revenue share) | A share of what the seller earns from the customer | Travel platforms, subscriptions | Calculated on the seller's revenue, not on the purchase price |
| Recurring commission | For every payment by the customer for as long as they pay | Software, memberships | Whether for the whole time, for a limited number of months, or only for the first payment |
| Threshold (threshold) | A fixed amount when the referred customer spends a certain sum | Services for business | Within what time the customer has to reach the threshold |
The same word can mean different things in different programmes. In the revenue share model “40 %” sounds impressive, but it is calculated on the seller's earnings – as a share of the purchase price it may be a few per cent.
What amount it is calculated on
Before comparing percentages, find out the base:
- With or without VAT. Most often the commission is calculated on the price excluding VAT. On a 100-euro purchase with 21 % VAT the base is about 82.64 euros.
- Delivery. Usually not included.
- Discounts. It is calculated on what the buyer actually paid. If you share a discount code, the base is smaller.
- The whole basket or only the recommended product. Some programmes pay for everything the person bought, others only for products that take part in the programme.
- Returns. When a product is returned, the commission is cancelled or reduced.
Cookie duration
When an affiliate link is clicked, a cookie or a click ID is stored in the buyer's browser. Cookie duration is the time during which a purchase is still attributed to you. It varies by a factor of tens:
| Programme | How long a click is valid | Source |
|---|---|---|
| Amazon Associates | 24 hours; once a product is added to the basket – up to 89 days to complete the order | Programme rules |
| AliExpress via Awin (United Kingdom programme) | 3 days | Programme terms on the network |
| GetYourGuide | 30 days | Partner help centre |
| track.lt programmes | Stated for each programme | Programme page |
A short cookie suits cheap goods that are bought straight away. For expensive purchases and trips, which a person considers for weeks, a short cookie means that a large share of the sales you bring in will remain unattributed.
A cookie does not always work
A cookie lives in one browser. If a person clicked the link on a phone and bought on a computer, cleared their cookies or browses in private mode, the purchase may remain unattributed. That is why some programmes give a personal discount code alongside the links: it works on any device.
Who the sale is attributed to
If the buyer clicked several affiliates' links before buying, the sale has to be attributed to someone. The most common rules:
- Last click. The commission goes to the one whose link was clicked last. This is the most widespread rule.
- First click. The commission goes to the one who first introduced the buyer to the product. It is less common.
- Code over link. If an affiliate code is entered in the basket, in many programmes it takes priority over the cookie.
The last-click rule explains why programmes prohibit coupon sites and brand advertising in search: they intercept the buyer at the last moment and take the commission for work done by someone else.
Hold period and payouts
A credited commission is not yet money. Between the sale and the payout there are three stages:
- Hold. The commission waits until the product return period ends and it becomes clear whether the payment has been reversed.
- Confirmation. The programme checks the sale and confirms or rejects it.
- Payout. Confirmed commissions are paid out at the agreed frequency once the minimum payout amount is reached.
The time frames differ greatly. Amazon pays roughly 60 days after the end of the month. Booking.com calculates the commission two months after the guest has checked out and pays when the balance exceeds 100 euros. When choosing a programme, look not only at the percentage but also at when you will first see the money.
How to compare two programmes
The only number that ties everything together is earnings per click:
earnings per click = conversion × average purchase × commission
Below is a calculation example with made-up assumptions. It shows the method, not real results.
| Programme A | Programme B | |
|---|---|---|
| Commission | 25 % | 5 % |
| Average purchase excluding VAT | 12 € | 90 € |
| Earnings per sale | 3.00 € | 4.50 € |
| Buy, out of 100 who clicked | 3 | 1 |
| Earnings per 100 clicks | 9.00 € | 4.50 € |
Programme B pays more per sale, but programme A pays twice as much for the same number of clicks. Until you have your own data you do not know the conversion, so in the first month it is worth simply trying and looking at the statistics.
Checklist before joining
- Which model: a percentage, a fixed amount, revenue share?
- What amount is it calculated on: with VAT, with delivery, with the discount?
- For how many days is a click valid?
- Which takes priority – the code or the link, the first or the last click?
- How long is the hold and what happens after a return?
- What is the minimum payout and when is it paid?
- For subscriptions, is payment made only for the first payment or for renewals too?
Frequently asked questions
What is commission?
It is remuneration for a result – a sale, a sign-up or another agreed action. In affiliate programmes it is most often calculated as a percentage of the sale amount.
What do CPS, CPA, CPL and CPC mean?
CPS is payment per sale, CPA – per agreed action, CPL – per sign-up or enquiry, CPC – per click.
What commission counts as good?
There is no single answer: 5 % of an expensive purchase can yield more than 30 % of a cheap one. Compare earnings per click, not percentages.
Why was the sale not attributed to me?
The most common reasons: the cookie duration expired, the buyer bought on another device, or they clicked another affiliate's link after yours.
Is commission taxed?
Yes, it is income. How to formalise it is explained in the ACS.lt article “Self-employment: registration certificate or business certificate”.
Sources
- Amazon. Associates Program Policies
https://affiliate-program.amazon.com/help/operating/policies - Booking.com Affiliate Partner Support. Commission and Payments
https://affiliates.support.booking.com/kb/s/article/Commission-and-Payments - Awin. AliExpress UK Affiliate Programme – programos sąlygos
https://ui.awin.com/merchant-profile-terms/7035 - GetYourGuide Partner Help. How to get started with the Affiliate Program as a Creator
https://partner.getyourguide.support/hc/en-us/articles/23082933149981-How-to-get-started-with-the-Affiliate-Program-as-a-Creator
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