Affiliate Commissions: How It Works

By Laze D.

March 6, 2020

While surfing through the internet, researching affiliate commissions and marketing, you might notice that some companies are all over the web – and they’re not even that good.

Well, the primary reason for that is they’ve got generously high affiliate commissions, usually one-time.

Affiliates are an easy way for companies to gain more customers without spending time on marketing. The affiliate desires to promote the product – because they’ll get rewarded.

If you’re looking to get into affiliate marketing and don’t know which company to choose – don’t worry we’ve got you covered.

What Are Affiliate Commissions?

When you’re marketing a certain company’s product – and they’ve given you a special link to use for your customers – you earn commissions for every purchase made through that link.

Here’s how it works.

1. The Link and Its Function

The affiliate link you’ve been given is essentially a way to put the visitor under your network. This is accomplished through browser cookies – which last for a pre-determined time.

In the case of VisitingHost – these cookies last 90 days.

2. Your Affiliate Commission

If your affiliate link cookie lasts for 90 days, as in our case, you will get credited with commissions if the person you referred makes a purchase within 90 days.

Affiliate programs are usually limited to some products, so sometimes you might not get credited with affiliate commission – depending on the product.

The main reason for this is that some services have very low margins – even in the single-digit percentages. Crediting you for these products or services would be detrimental to the company’s success.

3. Recurring Commissions

You can be credited multiple times for a single client – at least in our case.

Most companies will not credit recurring commissions – their goal is to pay you a single time to refer a client and then keep the client for as long as possible.

This puts a bigger number on the single commission but frees them from long-term commissions.

One-Time or Recurring Commissions?

As we said before, most companies will not credit you for multiple payments of the referred client. This preys on most people’s short-term goals but reduces their long-term profits.

Let’s look at it this way.

Say you’re using your affiliate marketing skills to promote a $10/month product and are to be paid a $60 fixed affiliate marketing commission for a single referred client.

The client will most likely pay for a prolonged period upfront – let’s say 1 year.

You might think this puts you at a good commission percentage of 50% - but not quite.

See, you’ll only get paid once – and the person you referred might be a client for 10 years. If you do the math on that – it calculates to $1200 total spend, and you’ve only been paid $60.

You’ll realize you’ve only been paid a mere 5% of the value you’ve brought to them. This is tricky and we don’t use such an affiliate commission system.

Recurring Commissions

Our affiliates are our marketing army, and we want them to be happy as much as we are. That’s why our system offers recurring affiliate commissions – to ensure our affiliates’ long term profits keep on growing.

If you’re in for a quick buck, this might not be the best for you, although after a few clients – you’ll have created a passive income source which doesn’t require any work.

And that’s what we’re all after, right?

Even though single-commission affiliate programs usually have much higher payouts, it’s not always the case.

Our affiliate program, for example, offers a starting affiliate payout of 30% – which is pretty high, considering that it’s also a recurring affiliate program.

For the same $10/month product you sell – you’ll be compensated a minimum of $360 in 10 years.

I say minimum, because our system automatically raises your affiliate commissions percentage if you’re high-performing – up to a recurring commission of 50% (!).

This means that in the best-case scenario, you’ll be earning $600 from the same total spend that the other company would’ve paid you $60 for.

To make it even more appealing, you take more of the revenue than us. Remember, we’ve got costs to cover which include:

  • Transaction Fees
  • Taxes
  • Hardware Equipment and Maintenance
  • Software Equipment and Maintenance
  • Employees To Pay

In short – your profit is much higher than ours because you have virtually zero running costs.


Recurring or one-time affiliate commissions?

It depends on your goal. If your goal is to make money in a short period of time, recurring commissions might not be for you.

But if you’re in this business for the long run – I suggest you get into a program with recurring commissions. In the end, it’s up to you to choose. All we can do is provide the necessary information..

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