Partner Marketing (affiliate marketing) is built on one simple idea: both sides win. But here’s the catch - those wins depend on having the right commission structure in place.
In Partner Marketing (affiliate marketing), how we reward Publishers can either accelerate growth or quietly stall it. Different types of commission rates each have their own benefits, making it essential to select the right structure to motivate Publishers and attract quality referrals.
Whether you’re a scrappy startup, a nimble agency, an ambitious SME, or someone juggling a side hustle, getting your commission model right isn’t just about payments, it’s about powering a system that helps everyone wins.
So, let’s break it down. We’ll explore the most effective commission structures for Publishers, how they actually work, and how to match them to your business goals. If you’re running - or planning to launch - a successful Partner Marketing (affiliate marketing) Program, this is your roadmap.
What Is a Commission Structure?
At its core, a commission structure is how you pay Publishers for the value they bring. Think of it as the blueprint for your Partner Marketing Program: You define the actions that matter most to your business (sales, leads), then you decide how much those actions are worth, including determining an appropriate commission rate.
When done right, this structure fuels Publisher motivation and builds a thriving partner ecosystem. When done poorly, it creates confusion, frustration, and missed opportunities. And here’s the truth: Setting up how you pay Publishers is only half the battle. You also need a strategy that aligns with your partners’ strengths - and your marketing goals.
The Most Common Commission Structures and Why They Work
Cost Per Sale (CPS)
Perfect for eCommerce or DTC brands, CPS models are straightforward - you pay when a sale happens, and the Publishers earns a commission for each sale generated.
Aligns payouts with real revenue.
Easy to track sales.
Supports strong profit margins.
Cost Per Action (CPA)
CPA structures reward Publishers through affiliate (partner) referrals when someone completes a specific action - like signing up for a free trial or downloading your app.
Great for lead generation or trial-based models.
Drives top-of-funnel growth.
A smart choice when building awareness fast.
“Recurring” Commissions – What It Actually Means
At first glance, “recurring” might suggest that commissions are paid monthly for ongoing subscriptions. However, within Tradedoubler, this term works differently.
When you see ‘recurring’ listed under the Commissions tab, it means that Partners (Publishers) can earn multiple commissions for multiple purchases—but only if each transaction is distinct. Here’s how it works:
You’ll earn commission each time a new transaction is made, if it happens while your tracking cookie is still valid (typically 30 days).
However, you do not earn a recurring monthly commission from a single transaction—like a subscription or ongoing payment setup.
Tradedoubler uses “single event” tracking, meaning commission is awarded only for the first transaction a user completes—even if it initiates a longer subscription.
If the same customer returns within the cookie window and makes another new transaction, you earn commission again. .
Tiered Commissions
Want to inspire competition and scale? Incentivizing Publishers through tiered commissions increases payouts as publishers drive more sales.
Keeps high-performing affiliates engaged.
Creates clear growth incentives.
Encourages affiliates to exceed their own sales goals.
Hybrid Models
Why choose just one model? Hybrid setups blend multiple commission types - like offering a CPA plus a small revenue share, which can optimize commissions.
Balances short-term reward with long-term potential.
Gives you room to test what works best.
Appeals to a wider range of Publishers.
Performance Bonuses – Not Applicable
At Tradedoubler, we do not offer cash bonuses or milestone-based performance rewards. Instead, we operate exclusively on performance-based commission structures, which include:
CPA (Cost Per Action)
CPS (Cost Per Sale)
CPL (Cost Per Lead)
These models are transparent, scalable, and aligned with real performance—you only pay when you get measurable results.
Matching Commission Structures to Business Types
Small and Medium Enterprises (SMEs)
SMEs need ROI-friendly models that reward Publishers without draining budgets. Top picks: CPS and CPA
Why it works: These models help manage costs while driving measurable results and maintain profitability. You pay for what matters - conversions.
Tips:
Keep your Partner Marketing link setup simple.
Use Tradedoubler to manage tracking and payouts.
Startups
Startups balance speed, scale, and budget. Simplicity and flexibility are key when launching fast. Top picks: CPS and CPL programs.
Why it works: You only pay for actual results—sales or leads—making it cost-effective and easy to scale as you grow.
Tips:
For CPS, set commission between 10–30% of the order value.
For CPL, offer €1–€15 depending on lead quality and conversion potential.
Define clear conversion goals like trial signups or email opt-ins to keep tracking focused.
Side Hustlers
Side hustlers want commissions that are simple, low-maintenance, and rewarding.
Why it works: These formats don’t demand a ton of time. Publishers earn while focusing on what fits their schedule.
Tips:
Offer built-in creatives.
Provide guides on how your Partner Marketing (affiliate marketing) Program works.
Accelerators and Incubators
Supporting multiple ventures means scalability and transparency are must-haves in an Affiliate/Partner Marketing Program's structure. Top picks: CPA Revenue Share.
Why it works: These models scale across startups and encourage early wins - perfect for high-growth portfolios.
Tips:
Use centralized dashboards.
Build in incentives for recruiting other Publishers.
Agencies
Agencies manage multiple client campaigns and need clarity, control, and consistent results. Top picks: CPS, CPL, and CPA programs with flexible commission models.
Why it works: Commission models are simple to align with client goals. Agencies can set competitive rates to attract quality Publishers and use recurring commissions for subscription-based clients.
Tips:
Choose a platform that supports multiple programs and seamless reporting.
Use tiered commission structures to align Publisher performance with client key performance indicators (KPIs).
Final Thoughts: Building a Structure That Works
“Building a successful partner program isn’t just about picking a commission model and hoping for the best. It’s about designing a structure that actively drives more sales, incentivizes real performance, and supports sustainable growth for both the Brand and our Partners. A high-performing program is built intentionally — with the right combination of clear objectives, flexible reward models, robust tracking, and ongoing partner support. It’s a balance between strategy and adaptability: creating a system that not only delivers immediate results but also scales efficiently over time. At Tradedoubler, we believe that true success in partner marketing comes from creating an ecosystem where Brands and Partners thrive together — connected by transparency, performance, and shared ambition." - Seth Rubin, Managing Director - Grow & General Manager APAC
Whether you’re focused on pay-per-lead, your commission model should reflect your marketing strategy, customer journey, and growth goals.
Because at the end of the day, commission structures for partners aren’t just a set of numbers—they’re the foundation of trust, engagement, and long-term results.
Ready to build a smarter, stronger growth engine? Sign up with Tradedoubler today and unlock the full power of Partner Marketing (affiliate marketing) — where every connection, every campaign, and every sale drive you closer to your goals. With Tradedoubler, you’re not just joining a network — you’re gaining a committed growth companion dedicated to boosting your partnerships and delivering real performance.