What is Commission? How is the commission for an affiliate marketing product calculated?

If you are involved in affiliate marketing and earn money online, you will often refer to the term “commission”. Understanding the terms and mechanisms and commission payment policies of each provider will help you choose the products that generate the most profit. Let’s find out what the commission is with Apdia.

In this article, we will help you better understand how the commission is calculated for each product. Ranking of commissions in making money with affiliate marketing.

Commission also translates to “commission” – this is the income you will receive when a customer makes a purchase by clicking on your marketing link in each affiliate program and will be charged as a percentage or a specified amount.

Commissions for each affiliate product can range from a few tens to several hundred thousand per successful transaction.

In the field of affiliate marketing, a product’s commission is the amount of money affiliates will receive when a customer places an order by clicking on your affiliate link.

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In affiliate marketing, there are two common types of commissions that are commonly used, commissions based on a percentage of the order value and commissions based on a specific amount. The commission of each affiliate program will be different because it largely depends on the provider’s commission policy.

– Commission by percentage of orders

This is the most popular way to earn money online today, and also the most convenient when the provider wants to pay commission for the referrer. The commission of a product will be paid as a % of the order or the sale price. Usually via CPS form – an affiliate marketing form where the provider will pay you a commission when a customer successfully buys by clicking on your affiliate link. The most important thing is that the client must make a successful payment and after verifying the payment, the commission will be charged.

– Commission a specific amount

CPO campaigns often have a specific commission for each product the affiliate marketer contacts. For example: you are an affiliate seller, you refer a customer to buy poinsettia com, you will immediately receive a specific amount of 100,000 VND/product.

In order to earn high commissions, people who make money online need to refer many people to buy products through their affiliate marketing link.

Characteristics of commissions according to affiliate marketing products

To understand the characteristics of the commission, it is necessary to divide affiliate marketing products into three types, which are:

– Physical products:

This is a tangible product, existing in everyday life that we can easily observe. Commissions for physical products typically range from 3-14% of the value of the product. These products have a fairly large purchasing power, so although the commission for each product is not high, customers buy a lot and accumulate commissions is not low.

– No product.:

Digital products are usually online courses, videos, software, e-books, they need to be used by digital devices such as phones, computers… These products have a high order value, so the commission is also quite high. A successful referral is also one hundred thousand. However, the volume of buyers is not much, buy when necessary.

– Products and services:

These are the products that customers will enjoy after registering, such as: Purchasing tours, booking rooms, opening bank cards… The commission of this type of product is not fixed, depending on the type of service, it can be calculated as a percentage or a specific amount.

This form of affiliate marketing will pay you a commission when a customer performs an action, be it a purchase, registration, form completion… through your affiliate link. The provider will pay a commission as soon as the customer’s information is confirmed to be true and they have a need to use the product or service.

Learning about commissions will help you find the right product for affiliate marketing. Also, don’t be in a hurry to choose a high commission affiliate program, but take your time to see the quality and effectiveness of the product. In addition, there is a commission policy, reliability and customer service regime of the provider.

This article has introduced the basic concepts and definitions surrounding commission from affiliate marketing products. Those who understand commissions will have a great advantage in being able to apply in practice to earn big money with affiliate marketing.