Affiliate Marketing
Affiliate Commission Models
Every affiliate programme pays for one of three things: a sale, a lead, or a click. The model decides what you are actually being paid for — and the headline rate tells you almost nothing until you know which model it belongs to.
Three models, three different jobs
Affiliate programmes pay in one of three ways, and the model is the first fact to check before you compare any two programmes. Pay per sale pays you a share of the price when a referred visitor buys. Pay per lead pays you when a referred visitor completes a defined action short of a purchase — signing up for a trial, requesting a quote, filling in a form. Pay per click pays you for the click itself, with no purchase required. Most programmes use pay per sale. Pay per lead is common for services that sell by consultation, such as insurance, finance or software trials. Pay per click is the rarest of the three in affiliate marketing, and where it exists the rate per click is very small. Confusing the models is the most common beginner error: a lead payout and a sale commission are not the same kind of money, and comparing them by percentage alone is meaningless.
Pay per sale: the standard model
In pay per sale, your commission is a percentage of the sale price, a flat amount per sale, or a mix of both — a flat amount plus a percentage, which is common for subscription products. The percentage varies by product category, not by how hard you promote. A merchant sets it from its own margins: a digital product with almost no cost per extra copy can afford a generous share, while a physical product with manufacturing, shipping and returns costs cannot. That is why the same merchant can pay a high rate on one category and a small one on another, and why quoting a single rate for a whole programme is usually misleading.
Two details of pay per sale deserve attention. First, recurring commission: some subscription products pay you not once but every month the referred customer stays subscribed, for a fixed number of months or for the life of the subscription. A small recurring commission can out-earn a large one-off payment over time, which is another reason the headline rate misleads. Second, commission tiers: some programmes raise your rate as your monthly sales volume grows. A tier looks generous until you check whether the higher rate applies to all your sales or only to the sales above the threshold — read the terms, because both versions exist.
Pay per lead: payment before the purchase
Pay per lead pays you when a referred visitor completes an action the merchant values: starting a free trial, booking a consultation, submitting a quote request, or completing a qualifying form. The payout is usually a flat amount per lead, and it is usually smaller than a sale commission because the merchant has not yet been paid by the customer. The attraction is conversion: far more visitors will start a free trial than will buy outright, so a lead programme can pay on a much larger share of your traffic.
The risk is quality. Merchants define what counts as a valid lead, and they reject leads that do not meet the definition — incomplete forms, duplicate submissions, visitors from excluded countries, or traffic the merchant judges to be low quality. Rejected leads earn nothing, and a programme that rejects most of your leads is worse than a programme that pays less per lead but accepts more. When you evaluate a lead programme, ask for the acceptance criteria in writing and track your own acceptance rate: leads sent versus leads paid. If the programme will not tell you the criteria, treat that as information.
Pay per click: rare, and usually tiny
Pay per click affiliate programmes pay a small amount for each click your link receives, regardless of what the visitor does afterwards. Genuine pay-per-click affiliate programmes are rare, because the model invites abuse: a merchant paying for clicks has no way to distinguish a click from a genuinely interested reader from a click generated to earn the payout. Where the model exists, the rate per click is a fraction of a currency unit, and the programme usually caps the number of paid clicks per visitor or per day. Do not confuse pay-per-click affiliate programmes with advertising networks that pay publishers per ad click — that is a different business, covered in our website monetization guide, and the two should never be compared as if they were the same income.
Commission rate vs EPC: the core teaching
The confusion between commission rate and EPC is the single most expensive misunderstanding in affiliate marketing, so it is worth stating as plainly as possible. The commission rate is the share of one sale you are paid. EPC — earnings per click — is your total commission divided by your total clicks. The rate describes one sale. EPC describes your whole funnel: the rate, the price, and how often clicks become sales. You cannot compare two programmes by rate alone, because a programme can pay a high rate on a cheap product that almost nobody buys, and a low rate on an expensive product that your readers buy often.
Here is the comparison worked twice, with round numbers, as an example — not a real result. Programme A: a product priced at one hundred units, a ten percent rate, so ten units per sale. One click in forty becomes a sale. One thousand clicks produce twenty-five sales and two hundred fifty units of commission, which is a quarter of a unit per click. Programme B: a product priced at twenty units, a fifty percent rate, so ten units per sale — the same per-sale money as Programme A. One click in two hundred becomes a sale. One thousand clicks produce five sales and fifty units of commission, which is one twentieth of a unit per click. Both programmes pay the same ten units per sale. The headline rate of Programme B is five times higher. Programme A earns five times more per click. The rate told you nothing; the EPC told you everything.
That is why serious affiliates track EPC per page and per programme, not total clicks and not the rate card. If you want to compare two programmes fairly, send them similar traffic and measure EPC over a meaningful sample — hundreds of clicks at least, because a handful of clicks produces EPC figures that jump around with every sale. And remember that EPC is backward-looking: it describes what your traffic did, not what it will do. A change in the programme’s rate, window or terms changes your EPC without any change in your work.
What changes your EPC without changing your content
Several programme-side facts move EPC on their own. The attribution window is the biggest: a thirty-day window credits you with sales a seven-day window would miss, because many readers think for days before buying. The merchant’s checkout experience matters too — a slow or confusing checkout loses sales you already earned in the reader’s mind. Seasonal demand moves conversion up and down, as does the merchant’s pricing: a price cut by the merchant raises your conversion rate while lowering your per-sale commission, and the net effect on EPC can go either way. None of these is under your control, which is why EPC should be compared between programmes only when the traffic is genuinely similar, and why a single programme’s EPC should be tracked over months, not days.
Fixed, tiered and recurring: the variations to check
| Structure | How it pays | What to check before joining |
|---|---|---|
| Flat percentage | The same share of every sale | Whether the rate differs by category |
| Flat amount | The same amount per sale, whatever the price | Whether it applies to discounted sales too |
| Tiered | Higher rate at higher monthly volume | Whether the higher rate applies to all sales or only the ones above the threshold |
| Recurring | A share of every subscription payment | How many months it lasts, and what happens if the customer pauses |
| Pay per lead | A flat amount per qualifying action | The exact definition of a valid lead and the rejection rate |
The table is worth keeping beside you when you compare programmes. Two programmes with the same headline number can have entirely different structures underneath it, and the structure decides what you actually earn. A tiered programme whose top rate you will never reach is, for you, a low-rate programme. A recurring programme with a three-month cap is, for you, a three-month programme. Read the structure, not the headline.
How to compare programmes honestly
A fair comparison needs four numbers for each programme: the commission structure, the attribution window, the payout threshold and holding period, and — once you have real traffic — your own EPC. Before you have traffic, the first three are enough to reject programmes: a window so short that a reader who thinks overnight is lost, a threshold so high that a small site may never reach it, or terms that forbid the kind of content you plan to write. After you have traffic, EPC replaces guesswork, as long as you compare programmes on similar traffic over a similar period. Keep the comparison in a simple record: programme, structure, window, threshold, clicks, sales, EPC, date last checked. Programme terms change, and a comparison made a year ago is a record of the past, not a guide to the present.
One more honest warning: some programmes advertise an EPC figure of their own — an average across all their affiliates. Treat that figure with care. An average across affiliates with different audiences, different content and different traffic sources tells you little about what your traffic will earn. Your own EPC, measured on your own pages, is the only EPC that describes your business. The how affiliate marketing works guide explains the full model, including how tracking and payment work, and the niche guide covers picking a topic where your EPC has a chance to grow.
Last checked: 14 November 2026.