What is a good affiliate commission rate

What is a Good Affiliate Commission Rate?

What is a Good Affiliate Commission Rate?

Affiliate marketing is the lifeblood of eCommerce. Every blog, news outlet, youtube channel, shopping website, app, podcast, or website you can think of incorporates some kind of affiliate marketing strategy to generate revenue.

According to Statista, one in six affiliate marketers earn over $50,000 per month, while the top earners reached revenues worth $150,000. The Covid-19 timeline alone produced a growth of over 30% which translates to a reach of over $8.2 billion for most affiliate marketers and promoters from $5.4 billion before.

All those numbers sound interesting but…

What is Affiliate Marketing?

Affiliate Marketing is when a brand or business ‘affiliates’ with third-party entities to promote their products.

Whenever a sale is made through a certain affiliate, the brand pays the affiliate in the form of a commission. The rate of a commission can be based on various factors.

Why is a fair affiliate marketing rate important?

Like any other business, affiliate marketers spend years perfecting a niche and building a target audience.

You need to remember that despite the company deciding the commission rate, you as marketers will be doing most of the heavy lifting when routing customers to them.

A fair affiliate marketing rate encourages affiliates to do their best. So, it’s important to see fair affiliate marketing rates for your efforts.

What is a good affiliate commission rate?

According to multiple accounts, the average affiliate commission lies between 5% and 30%.

The biggest factor affecting affiliate commission rates is the industry. General entertainment and mainstream products pay less commission due to the heightened level of competition. You are bound to create fewer conversions per CPC.

Here’s how to calculate your average affiliate commission rate:

(Avg. Order Value x Repeat Purchase Rate) – Customer Acquisition Cost

Your goal is to aim for a rate lower than the average customer lifetime value which will help you figure out the proper limit for payout rates.

To reiterate, you need to expect your affiliate rates depending on your business type.

For example, eCommerce companies constantly monitor conversion rates and their commission depends on a monthly payout model.

Factors affecting affiliate commission rates

Firstly, it depends on the kind of product you are promoting. For example, physical products tend to pay less commission due to the additional production costs like packaging, retailing, advertising, distribution, etc. bundled within.

Digital products pay better rates due to lesser production costs. Digital products like ebooks, apps, browser add-ons, online courses, etc. have a bigger marketing budget and can afford to pay better to the best affiliate program.

Popular Affiliate Commission Structures:

Although there are many affiliate commission structures, the most popular ones are:

Cost Per Click (CPC):

The CPC affiliate structure relies on a user clicking on a brand ad resulting in commission. Making the user click on a link sounds easy enough but typically CPC commission margins are low; it can also work as a conversion metric rather than a straight-up sales route.

Cost per Sale (CPS):

Similar to CPC, CPS gives you a commission every time a sale goes through. Now, a sale is a much bigger incentive than an ad because a customer bought rather than only clicking on an ad. As a brand, it is a more cost-effective method than any other affiliate model.

Cost per Action (CPA):

Not to be confused with Cost per Acquisition, CPA relies on a user completing a certain action like signing up to an email list, referring the website to a friend, completing a survey, etc. Its purpose isn’t to drive traffic to a website but to produce conversion-related data.

Hybrid Affiliate Model:

A hybrid affiliate model employs the use of any of the 2 affiliate models to combine or split the risk between publishers and advertisers.

Many brands offer a combined CPC & CPS model if you are the top-earning affiliate marketer. Similarly, advertising campaigns bundle CPA with CPC to generate huge conversion rates.

Typical Affiliate rates across various industries/niches

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Fiverr Affiliate Program Overview

No matter what niche you’re into, Fiverr’s affiliate program can offer your audience access to a huge gig market. The program involves following Fiverr’s process to sign up as an affiliate leading up to converted traffic. Every traffic conversion gets you paid.

With over 5 million users, Fiverr works with top-tier clients and offers affordable services which mean there’s something for everyone.

Commission Structure:

The standard Fiverr CPA is $15-150 CPA. This number is entirely based on what your first buyers might be interested in. Your commission would vary based on that factor.

However, the Fiverr Hybrid CPA comes with a $10 fixed CPA + 10% RevShare for 12 months.

Similarly, promoting specific Fiverr Affiliate programs would earn you better commissions, such as—

  • Fiverr Business – $100 fixed + 10% RevShare for 12 months
  • Fiverr Affiliate – 10% earnings for a lifetime
  • Fiverr Learn – 30% per course order

You can learn more about Fiverr’s Commission Plans here.

Benefits of joining the Fiverr Affiliate Program:

Lots of tools, and widgets provided

The initial sign-up phase offers you everything you need to get started as a Fiverr Affiliate. You can use Fiverr’s marketing tools to get things done. Tools like the Gig Ads Widget offer an easy commission route by integrating it into your website.

You can target a wide audience as there’s a match for every need

Whether your audience is a student or a scientist or anything in between, there’s everything in Fiverr to target. This makes Fiverr the best affiliate marketing weapon in your revenue arsenal.

Lots of Services to promote

Fiverr is a diverse platform that offers all kinds of services. You can promote Fiverr Logo Maker, Fiverr Business, Fiverr Workspace, Fiverr Learn, or even promote the Affiliates Program itself to earn a commission.

No Geographic limitations. Operates in 160 countries

With no regional boundaries, you can easily target your audience living anywhere across the world. 160 countries offer a million opportunities to earn, share, and grow. Also fiverr lets you target your audience with GeoRotation Banners without the need for any translators.

Strong Brand recall.

Fiverr has the strongest brand presence of any other gig website. Your customers are more likely to remember your website and come back if Fiverr becomes an answer to their solution.

Here’s the Google Trends screenshot for the last 5 years showing an increasing interest in Fiverr across the world.

Affordable prices – Better Conversions

The biggest pro to working with Fiverr is its affordability. Customers can find gigs starting from $5 to get things like typing up an essay to getting their SEO numbers up. Whatever the budget scales up to, Fiverr has a favorable conversion rate.

Excellent support for Influencers

Fiverr works with influencers and marketing experts all the time. So if you can promote a product, give shoutouts, can model, or launch marketing campaigns, Fiverr helps you by creating dedicated videos, offering better affiliate rates, and much more.



What is a good affiliate commission rate?

A good affiliate commission rate could depend on a number of factors. The niche or industry you’re into, the size of your audience, the quality of your content, promotion strategy, etc.

The average commission rate typically floats between 5% and 30%.

Which industries pay the best affiliate commission rates?

You can earn commendable commission rates in industries like SaaS or finance which pay between 20% to 30% for every conversion.

How to earn an affiliate commission from Fiverr’s affiliate program?

You can start earning commissions when your promoted Fiverr services start converting. This will obviously involve a strategic effort on your end. But due to Fiverr’s affordable rates, conversions become more common than you might think.

Final Word

So what are you waiting for? Sign up for Fiverr’s Affiliate Program right now and start promoting Fiverr services no matter how small/big your audience is.

Fiverr is easy to promote, offers tangible services at affordable rates, and its marketing tools could give your own website a traffic boost.

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