How Commissions Work
What you will learn
- Read a commission structure correctly
- Understand cookie windows and attribution
- Know why a sale can be reversed
The lesson
Commission types
Percentage of sale: you earn a share of the order value. Common in physical products and courses. Fixed amount per action: you earn a set fee per lead, trial or signup. Recurring: you earn a share every month while the customer stays subscribed, common in software.
Higher percentage is not automatically better. 40% of a $15 product is $6. 5% of a $900 product is $45. Always calculate the real number, not the headline percentage.
Cookie window and attribution
When someone clicks your link, the program stores a cookie or an ID. The cookie window is how long you get credit — 24 hours, 30 days, 90 days, or lifetime depending on the program.
Most programs use last-click attribution: the last affiliate link clicked before the purchase gets the commission. That is why timing matters — you want to be the last useful recommendation someone sees.
Pending, approved, reversed
Commissions usually appear as pending first. After the refund or return window closes, they are approved and paid on the program's schedule. If the buyer refunds or the order is cancelled, the commission is reversed.
Almost all programs have a payout threshold — a minimum balance before they send money. Check it before you plan anything around it.
Real example
Product price: $60. Commission: 20%. That is $12 per sale.
Ten sales in a month = $120 gross. If two buyers refund, you keep $96.
A recurring software offer at $8/month per customer with 10 customers staying six months is $480 total — slower to start, larger over time.
Important points
- +Always check: commission rate, cookie window, payout threshold, payment method, refund policy.
- +Recurring commissions reward long-term content; one-off high-ticket rewards deep trust.
- +Some programs exclude certain product categories or discounted orders from commission.
Common mistakes
- –Chasing the highest percentage instead of the highest realistic earning per visitor.
- –Ignoring the cookie window on products people research for weeks.
- –Forgetting that pending is not paid.
Action task
Run the numbers
Pick any product you might promote and calculate the real commission per sale, then how many sales you would need for a small first goal such as $100.
Key takeaways
- Judge offers by money per sale, not by percentage.
- Cookie window and attribution decide whether you get credited.
- Reversals are normal — plan with approved earnings only.