How Much Commission Should I Be Offering?
How much commission should I be offering?
Andrew
Last Update 2 years ago
Unlike other affiliate networks, Avelon charges no onboarding, upfront, monthly or override fees. We designed the platform to offer affiliates what they deserve, and with the huge costs attributed to other networks, the average commission is just 3%. Pitiful.
Due to their being no costs involved (aside from the commission payment to the affiliate), we have calculated you are able to offer 2 - 5 times the average commission payment than other affiliate networks, and still retain a better margin.
We have included our recommendations based on product margin below for an AOV of £62.50.
| Average order value | Margin % on product | Commission % | Final payment | NET profit |
| £62.50 | 20% | 5% | £3.13 | £9.38 |
| £62.50 | 30% | 10% | £6.25 | £12.50 |
| £62.50 | 40% | 15% | £9.38 | £15.63 |
| £62.50 | 50% | 20% | £12.50 | £18.75 |
| £62.50 | 60% | 25% | £15.63 | £21.88 |
We have included our recommendations based on product margin below for an AOV of £1500.00
| Average order value | Margin % on product | Commission % | Final payment | NET profit |
| £1500.00 | 20% | 5% | £75.00 | £225.00 |
| £1500.00 | 30% | 8% | £120.00 | £330.00 |
| £1500.00 | 40% | 11% | £165.00 | £435.00 |
| £1500.00 | 45% | 13% | £195.00 | £480.00 |
Of course, these commission percentages change depending on the price of the product. It's truly up to you how much % you assign for commission, but we see this as another version of marketing and it should be treated that way.
If you need help with setting up a commission table, check out the 'Setting up SKU level and default commission' article.