Should Affiliate Commission Be Set Per Product Instead Of Per Programme?

Most affiliate programmes apply a single commission rate across an entire campaign or programme. For example, a brand may decide to pay affiliates 10% on every sale regardless of the product being sold.

While this approach is simple, it can create challenges as programmes scale. Products often have very different profit margins, promotional goals and commercial value. Treating every product identically may not always produce the best outcome for either the brand or the affiliate.

Imagine a fashion retailer selling a £15 accessory with a high profit margin alongside a £900 designer item with a much smaller margin. Paying the same commission percentage on both products may mean overpaying on one and under-incentivising another.

The same applies in travel, electronics and subscription businesses.

Examples:

• A £20 accessory with a 70% margin could support a higher commission rate.
• An £800 television with a 10% margin may require a lower commission rate.
• A holiday package may justify a different commission structure based on seasonality or destination.
• Subscription products could use fixed payments or recurring commissions.

Using product-level commission structures can provide several advantages.

Improved margin protection

Brands can align commission rates with product profitability rather than applying a broad rule across an entire catalogue.

Better affiliate incentives

Higher commissions can be used to encourage promotion of strategic products, launches or high-value categories.

Greater flexibility

Promotional campaigns, seasonal offers and category-specific incentives become easier to manage.

More efficient scaling

As product catalogues grow, commission structures can become more tailored and commercially efficient.

However, product-level commission is not without challenges.

Managing different commission values across hundreds or thousands of products can become difficult when product information and affiliate management are stored separately. Product changes, inventory updates and promotional activity can quickly create operational complexity.

This is where product data can become increasingly important within affiliate management.

When affiliate tracking, product information and commission structures work together within a single system, managing product-level commissions becomes more practical and scalable.

Rather than asking:

"What commission should our affiliate programme pay?"

Brands may eventually begin asking:

"What commission should this product pay?"

As affiliate programmes become more sophisticated, product-level commission structures may become an increasingly valuable tool for balancing growth, profitability and partner incentives.