Q: Should I pay commission on gross sale value or net?
Paying on gross is a quiet mistake that eats margin. Gross includes tax, shipping, and the portion that gets refunded — none of which is revenue you actually keep. Affiliates love it; your P&L doesn't.
What to pay on:
— Net product revenue: sale price minus tax, shipping, and discounts already applied.
— Post-refund value, enforced through your clawback/lock window so returns reduce the commissionable amount.
— For subscriptions, decide first-payment-only vs. recurring explicitly — don't let the network default decide for you.
Caveat: be careful undercutting the headline rate to compensate. A "10% of net" can look worse than "8% of gross" to a partner comparing programs, even when it pays them more. Communicate the actual dollars they'll earn on a typical order, not just the percentage.
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Q: Should I pay commission on gross sale value or net?
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