How affiliate commission rates work on Commission Factory

Key takeaways

Your affiliate commission rate is what a partner earns for an eligible sale or action, as a percentage or a fixed amount.
Set a sustainable default rate below your maximum, so you have room for campaign increases.
Custom commission rules are checked in priority order. The first matching rule sets the rate, not the highest one.
Percentage commission is calculated on the sale value recorded in Commission Factory, not the full checkout total.
Test your rules, confirm notice periods, and schedule in Sydney time before a campaign goes live.

The right affiliate commission rates give your partners a clear reason to promote your brand. They also help you reward the sales that matter most, while keeping your margins in view.

Between default rates, custom rules, and campaign increases, it can be hard to know which rate applies and when. This cheat sheet breaks it down, so you can plan your activity, check your setup, and tell partners exactly what they can earn.

Affiliate commission rates and rules at a glance

Commission rules glossary

All rates in the examples below are illustrative. Choose a structure that suits your programme, margins, and partner agreements.

How do you choose an affiliate commission rate?

Start with what your business can afford. Work out a sustainable commission ceiling from your profit margins, then set your default rate below it.

That gap leaves room for promotions, private partner offers, and temporary increases. If your margins allow a maximum of 15%, you might set a default of 10%. You then have flexibility to offer more for agreed campaign activity.

Think about the behaviour you want to encourage. New customers, a particular product range, or stronger partner performance? Your affiliate commission structure should support that goal.

Competitor cashback offers can give useful context. Just remember the cashback shown to shoppers isn't the commission paid to the publisher. Don't treat the two as interchangeable.

What can custom commission rules be based on?

Custom commission rates let you tailor your offer using specific conditions. Rules can apply across your programme or to individual affiliates, either ongoing or for a set campaign period.

Partner performance

Use transaction counts or total sale value to build performance incentives. For example, offer a higher rate once a partner reaches an agreed sales threshold.

Traffic and partner type

Set conditions around website type, traffic channel, or creative type. This lets you support different promotional approaches.

Transaction details

Use customer type, coupon code, currency, or sale value. For example, set different rates for new and returning customers, or for sales using particular coupons.

Products and cart items

Set conditions by brand, category, subcategory, or product SKU. This helps you match commission to different product margins.

Check your tracking first. Your integration must pass the data a rule needs, such as customer type, coupon, or cart item details. Without it, the rule won't work as intended.

How does commission rule priority work?

Commission Factory checks custom commission rules from top to bottom and applies the first one that matches. Put specific exceptions above broader rules when that's the outcome you want.

Say a partner has a 12% rate for the month, plus an agreed 14% rate for a two-day flash sale. The flash sale rule needs higher priority, or it won't take effect during those two days.

Don't assume the highest percentage wins. Check the order, then test the result.

Commission increases: percentage or percentage points?

A percentage increase is calculated from the existing rate. If your rate is 5% and you offer a 50% increase, the new rate is 7.5%. That's an increase of 2.5 percentage points.

Current rate	Increase offered	New rate	Change in percentage points
5%	50%	7.5%	2.5

When you apply for an opportunity through Opportunities > Marketplace, enter the percentage increase you're requesting on your current rate. Once it's approved, the uplift applies automatically to the relevant commission rules. You don't need to create a separate rule.

Affiliates can see temporary opportunity boosts in the Opportunities affecting commission rates table while the opportunity is active.

Before agreeing an increase, confirm the resulting rate, campaign dates, and expected exposure with your partner.

What sale value is affiliate commission calculated on?

Percentage-based commission is calculated on the sale value recorded in Commission Factory. That isn't always the total paid at checkout.

In most cases, the value you pass back excludes GST, shipping, and gift card purchases. Your commission rules can also affect the amount earned.

For example, if the recorded eligible sale value is $100 and the rate is 8%, the commission is $8. Use the recorded value when you check a transaction, not the full checkout total.

Affiliates can open a transaction's three-dot menu and select More Information to see its sale value and commission details.

Check the timing before your campaign goes live

Allow notice for commission reductions

Commission reductions need a minimum notice period. Our Help Centre describes a seven-day period, and hours of the day aren't counted in that calculation. Check your programme's notice period before you schedule a reduction. Affiliates are notified of commission changes automatically.

Schedule using Sydney time

Commission Factory runs on Sydney time: AEST (UTC+10) or AEDT (UTC+11), depending on daylight saving. If your partner or target market is in another time zone, convert both the start and end of your campaign.

For example, 9am in Singapore is midday in Sydney during AEDT. Confirm the conversion for your actual campaign dates, especially around daylight saving changes.

Share the agreed timing with your partner, so your increase lines up with the activity they're running.

How do you test commission rules before launch?

Use the testing feature in Commission Factory to see how active and scheduled rules apply before a real transaction comes through.

Choose the affiliate you want to test.
Select the campaign date.
Enter the conditions you want to check, such as customer = return.
Review the rule the platform highlights and the resulting rate.
Repeat for other scenarios, including dates outside the promotion.

If the result doesn't match your agreement, check the conditions and priority order. You can also view historical rates and download your commission rules as CSV, JSON, or XML. Expired rules can't be edited.

Where can affiliates check their commission rates?

Affiliates can see rates across all approved advertiser programmes under Finance > Commissions. From there, switch between current, upcoming, and historic rates, export the data, or use Test a Commission Rate to check a scenario.

For a single programme, go to Partners > Advertisers > View Advertiser > Commission Rates. This shows the default rate and custom rules in priority order.

Your commission setup checklist

Set a sustainable default rate with room for campaign increases.
Give each custom rule a clear programme objective.
Check your tracking passes the data each rule needs.
Review rule priority and test overlapping scenarios.
Confirm notice periods, campaign dates, and Sydney time conversions.
Explain the rate and conditions clearly to your partners.

Frequently asked questions

What is a good affiliate commission rate?

There's no single right rate. Work out the maximum your margins can sustain, then set your default below it so you have room for campaign increases.

Does the highest commission rule always apply?

No. Commission Factory applies the first matching rule in priority order. Put specific exceptions, like a flash sale rate, above broader rules. Ensure the correct affiliate is assigned to the rule if applicable.

Is commission calculated on the checkout total?

No. Percentage commission is calculated on the sale value recorded in Commission Factory, which usually excludes GST, shipping, and gift card purchases.

What's the difference between a percentage increase and percentage points?

A percentage increase is calculated from the current rate. A 50% increase on a 5% rate gives 7.5%, which is 2.5 percentage points higher.

What time zone does Commission Factory use for commission rules?

Sydney time: AEST (UTC+10) or AEDT (UTC+11) during daylight saving. Convert your campaign start and end times if you or your partner are in another time zone.

Get your commission structure right

Keep your structure easy to understand and your partners informed. Need help putting the right commission rules in place? Speak to your Commission Factory account contact, or read our guide to starting an affiliate programme.