Begin with contribution margin
There is no universal affiliate percentage. Calculate the money left after product cost, fulfillment, discounts, returns, transaction fees, and expected support. The commission must fit inside that amount while leaving a worthwhile contribution to the business.
Run the calculation for representative products rather than using store-wide revenue averages. A percentage that works for a replenishable item may fail for a heavy, frequently returned, or deeply discounted product.
Choose a structure partners can predict
A simple percentage of eligible net sales is easy to understand. Flat commissions can work when order values are consistent. Product-level rates protect margin where the catalog varies, but too many exceptions make the offer hard to promote.
Document when a commission becomes approved, how returns are handled, and when payment occurs. Predictability often matters as much as the headline rate.
Use bonuses for a defined behavior
Temporary launch bonuses, first-sale rewards, or higher rates after a clear threshold can create momentum. Tie each incentive to a business reason and a fixed period. Permanent complexity is rarely justified by a short campaign.
Do not reward order volume without reviewing quality. High cancellation, self-referral, or low-margin behavior can make an apparently productive tier unprofitable.
Review the whole acquisition cost
Commission is only one cost. Include discounts, gifting, platform fees, payment-provider charges, staff time, and creative support. Compare the resulting acquisition cost and customer quality with other channels over a consistent period.
Revisit terms when margin, product mix, or customer behavior changes. Communicate changes in advance and preserve trust with existing partners.