Comparing Fixed Payouts vs. % Commissions in Affiliate Marketing

When setting up your affiliate program, one of the first questions you'll face is this:‍

Do you pay creators a fixed rate or a percentage of what they sell ?

Both models work — but they serve different goals. Here’s how to decide which is right for your brand (or when to use both).

1. Fixed Payouts: Simpler and More Predictable

Fixed payouts offer creators a set amount per conversion (e.g., $10 per sale). They’re easy to understand, easy to budget for, and often ideal when :

• You have a consistent AOV
• You’re running paid ads with creators
• You want to control margins precisely

Pros :

• Predictable cost per acquisition (CPA)
• Easier to compare across creators
• Useful for lower-ticket products

Cons :

• Doesn’t scale with AOV
• Might under-incentivize top performers

2. % Commissions: Performance-Based and Scalable

Percentage commissions give creators a share of what they sell (e.g., 15% of GMV). This model rewards performance and works best when :

• Your AOV varies a lot
• You want to motivate creators to sell more
• You’re in a high-margin vertical

Pros :

• Scales with results
• Keeps creators incentivized over time
• Great for high-ticket or seasonal products

Cons :

• Harder to predict exact payouts
• Requires clear attribution and tracking

3. When to Use Both

Many brands on Growi choose to combine both models :

“$5 per sale + 10% commission on GMV”

This hybrid model gives creators guaranteed earnings while still rewarding strong performance — especially useful when onboarding new affiliates or converting paid partners into performance-based ones.

4. Use Product Margins to Decide

A simple rule of thumb :

• Low-margin product? Use fixed payouts.
• High-margin product? Use % commissions or hybrid

Always factor in return rates and customer LTV when setting rates — not just the upfront sale.

TL;DR

Model-Best For-Risk-Reward

Fixed Payouts-Simplicity, tight CPA control-Low-Limited

% Commissions-Performance, scalability-Medium-High

Hybrid-Creator retention + performance-Balanced-Optimized

Growi supports all payout models, letting you test and adjust as needed — including tiered commissions, hybrid setups, and payout visibility for creators.