It’s been a tough week personally as I am still searching for a job as well as sorting out paperwork after the death of my father. It’s tough times but it has to be done. I feel like not doing anything but that will be of no use to me, my wife, my children or to you. I am teaching people what they need to start an affiliate marketing business and they are depending on me so I need to be present! Let me know in the comments how you juggled business and personal responsibilities at the same time.
Affiliate marketing is a goldmine—if you know where to dig. But too many people jump in without understanding the foundation of how they get paid. That’s like opening a shop without knowing how much profit you make per sale. Spoiler alert: that’s a recipe for disappointment.
If you’ve been struggling to make consistent income, or you just want to make smarter choices about the programs you promote, understanding affiliate commission structures is non-negotiable. This post will break it all down—no fluff, no hype, just practical insights that will help you maximise your affiliate earnings.
Why Affiliate Commission Structures Matter
Affiliate marketing isn’t just about promoting a product—it’s about promoting the right product with the right commission structure that aligns with your goals. A great commission structure can mean:
🟡 Higher earnings per sale – So you work smarter, not harder.
🟡 Long-term passive income – Instead of chasing new sales daily, some commissions keep paying you.
🟡 More stability – Some models give you predictable revenue instead of feast-or-famine income.
Now, let’s break down the main types of commission structures so you can see which one works best for you.
1. One-Time Commission (Fixed Commission Per Sale)
How It Works
You promote a product, and when someone buys through your affiliate link, you get a one-time commission. Simple, clean, and widely used:
Pros:
🟡 Immediate payouts—you get paid after each sale.
🟡 No long-term commitments—get in, get paid, move on.
🟡 Ideal for high-ticket items where a single sale can bring in big commissions.
Cons:
⚪ No recurring revenue—you have to keep finding new customers.
⚪ Can be unpredictable—if you don’t make sales, you don’t get paid.
Best For:
✔️ Physical products (Amazon, eBay, Walmart)
✔️ One-off digital products (Courses, software, eBooks)
✔️ People who love fast sales cycles and don’t mind finding new leads.
Pro Tip:
💡 Look for high-ticket affiliate programs. Promoting something that pays a $500 commission per sale is easier than selling a low-commission product 50 times.
2. Recurring Commission (Subscription-Based Earnings)
How It Works
Instead of a one-time payment, you earn recurring commissions every time a customer renews their subscription.
Pros:
🟡 Passive income—you make money every month from previous sales.
🟡 More stability—you’re not constantly hunting for new customers.
🟡 Compounds over time—the more subscribers you bring in, the bigger your paycheck grows.
Cons:
⚪ Takes longer to build up significant income.
⚪ If people cancel their subscriptions, your income drops.
Best For:
✔️ Software-as-a-Service (SaaS) products (ClickFunnels, ConvertKit, Kartra)
✔️ Membership sites (MasterClass, Udemy subscription plans)
✔️ Tools and platforms with monthly fees
Pro Tip:
💡 Focus on programs with a strong retention rate. If a product is great, people won’t cancel, and you’ll keep getting paid.
3. Two-Tier Commissions (Earn from Other Affiliates’ Sales)
How It Works
You recruit other affiliates into the program, and when they make sales, you earn a commission from their earnings. Think of it like an affiliate referral program.
Pros:
🟡 You make extra money without extra work—once you bring in affiliates, they do the selling.
🟡 Can be combined with other models for multiple income streams.
🟡 Great for building a long-term, hands-off revenue stream.
Cons:
⚪ You rely on others to generate sales.
⚪ Can take time to find active affiliates who actually make sales.
Best For:
✔️ Affiliate networks like ShareASale, JVZoo, and ClickBank.
✔️ Anyone who wants to scale beyond just their own sales.
Pro Tip:
💡 Build a community around your affiliate team. Offer training, tips, and support to keep your referrals active and making sales.
4. Pay-Per-Lead (Cost Per Action Commissions)
How It Works
You get paid when someone signs up for a free trial, fills out a form, or completes a specific action—even if they don’t buy anything.
Pros:
🟡 Easier conversions—no purchase required.
🟡 Can make money faster than waiting for high-ticket sales.
🟡 Ideal for beginners who don’t want to focus on selling.
Cons:
⚪ Lower payouts compared to per-sale commissions.
⚪ Some programs have strict approval processes.
Best For:
✔️ Finance, insurance, and education (where companies pay high CPA commissions).
✔️ SaaS and free trial offers.
Pro Tip:
💡 Find CPA programs with the highest payout per lead. Some finance programs pay $50–$200 per free sign-up.
How to Choose the Right Affiliate Commission Structure
Not all commission structures are created equal. The best one for you depends on your audience, niche, and strategy.
•If you want quick cash → Focus on high-ticket one-time commissions.
•If you want long-term passive income → Promote recurring commissions.
•If you want to scale effortlessly → Build a team with two-tier commissions.
•If you prefer easier conversions → Go for pay-per-lead (CPA) programs.
🔥 Ready to Level Up Your Affiliate Game?
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Let me know in the comments: Which commission structure do you prefer and why?
Thank you for reading, I hope it helped you in some way. You are only a few steps behind me!
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Until next time, take care.
Atif
#Atif’s Academy
Hi Atif – You did an excellent job summarizing this business! I especially like how you added the pros and cons for the reader to understand the possibilities of each option. As Affiliate Marketing continues to grow and evolve, the structure may change but the premise remains the same. There is a great opportunity to be one’s own boss and be in control of one’s business. With technology changes, system upgrades and advances and finally the unknown possibilities and challenges of AI, Affiliate Marketing can only become more of an option in this online world. Getting in now will help all of us in this game get ahead. Thank you for your detailed, and easy to understand explanation of these options.
Ernie, Thank you for your thoughtful comment! I appreciate you highlighting the pros and cons section—it’s something I focus on because, in my experience, transparency is key when evaluating opportunities like Affiliate Marketing. You’re absolutely right that while the structure of the business may evolve, the core idea of earning through partnerships remains strong. As someone actively building my affiliate business while juggling work and family, I see firsthand how technology shifts, AI advancements, and system upgrades are shaping this space. Getting in now is indeed crucial, and I’m learning that staying adaptable and continuously testing strategies is just as important as starting early. Glad you found the explanation clear—I aim to break things down in a way that helps others make informed decisions!
Hi Atif,
I really appreciate this breakdown of commission structures, it makes it so much easier to understand! I like the idea of recurring commissions because it builds long-term income, but high-ticket one-time sales also sound great for quick cash. Thanks for sharing these insights! Hope things get easier for you personally, you’re doing great by staying focused. Keep up the great work!
Meredith
Thanks so much, Meredith! I’m glad you found the breakdown helpful—recurring commissions definitely help with stability, while high-ticket sales can be a great boost when they come through. Finding the right balance between the two is key, and I’m still experimenting to see what works best. I really appreciate your kind words—it means a lot, and I’m staying focused and pushing forward!