<b>Q: Should I pay one flat commission or vary it by product?</b>

<b>Q: Should I pay one flat commission or vary it by product?</b>

Vary it, but not by gut feel. Set rates by your contribution margin, not your top-line price. A $200 product with 70% margin can carry a 30% payout; a $200 product with 20% margin cannot.

Practical setup:

— Group your catalog into 2-4 margin tiers, assign a payout band to each, and show affiliates a simple rate card.
— Cap blended payout at roughly 30-40% of margin so you keep room for your own ad spend and refunds.
— Use a default rate for new or untagged products so nothing pays 0% by accident.

Caveat: don't slice it into 15 micro-rates. Affiliates promote what they can predict. If they can't estimate earnings per click in their head, your best partners pick a competitor's program with a clean single number. Clarity often beats a marginally smarter rate.

Got a question? Send it in.