How to maximise the potential of your commissions
- Written by Sylwia Loonan on
Learn how to best create your compensation structure, what to consider when setting publisher commissions and which tools Awin offers for this purpose.
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Learn how to best create your compensation structure, what to consider when setting publisher commissions and which tools Awin offers for this purpose.
The success of your affiliate programme depends not only on the quality and attractiveness of your product offer but also on publishers promoting it. Of course, publishers will look at whether your offer fits their target group and platform. But equally they will do a cost-benefit analysis to see if it is worthwhile to promote your programme. That’s why it’s important to balance your commission rates and rewards.
Commission rates determine the money paid to a publisher for delivering leads, sales or any other agreed-upon deliverables like downloads, clicks, or awareness for an advertiser's affiliate programme.
Commissions can be paid on either a fixed or percentage basis and often include a bonus element (usually linked to set targets) in addition to the standard rate.
The most common commission types are:
Before you determine your commission structure, it always makes sense to look at the commission rates of your competitors and your margin calculation. Another method, though more complicated, is to include aspects of the customer lifetime value (CLV) of customers coming through affiliates in your calculation. Check how often your customers referred by affiliates make purchases and how high their average shopping basket value is. Check out our “How to determine customer lifetime value” post for more information on that topic.
In summary, you should consider the following factors when determining how much to pay your publishers:
Awin’s commissioning tools offer a range of payment flexibility options that allow you to collaborate with different types of publishers, across different campaigns while being in control over your ROI.
All you need to do is log into your account, go to the “Commission” tab and choose the commissioning option that fits your needs best. Start by using the Commission Manager to set up your commission groups and rates.
For detailed instructions, visit our wiki for Commission Manager, Commission by Basket Value, and Commission by Assist.
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