In my original article I suggested giving affiliates a large share of profit. They promote the product, and you pay when a sale arrives. That can be attractive, particularly if they reach customers you would not have found yourself. Yet the fifty percent figure I mentioned was never a rule for every business.
Calculate beyond the first order
Start with revenue per sale. Subtract purchasing, payment, shipping, returns, customer support and platform costs. What remains must cover marketing and profit. If a partner mostly brings existing customers, you may pay for orders that would have happened anyway. If they reach a genuinely new audience, a higher reward may make sense.
Be clear about what counts as an attributed sale. Which link or code is used? What happens after a return? When do you pay? Transparent terms make the offer fairer and prevent later disputes.
Test the incentive
A commission must justify an affiliate's effort, but a percentage is not everything. A trustworthy product, clear information and timely payment matter too. Test with a small group and examine incremental sales and customer quality, not just the number of partners. A high rate is a way to grow a good channel, not an end in itself.