Summary
How high your affiliate commission should be depends on your margin, not on an industry average. This article shows how to work backwards from margin, what ranges published sources give, how to place new-customer commission and voucher sites, and how commission and network fee play out in worked examples. The examples use assumed values and do not replace your own calculation.
What commission should you offer affiliates?
Offer a commission your margin can carry after cost of goods, shipping, returns and fees, and that still gives the publisher a reason to promote you. Published sources give 5 to 12 per cent for retail [1] and 15 to 20 per cent on first-time customers for UK brands [2]. Which number suits you only shows in your own calculation, because with a thin margin even a small commission can be too much.
How do you work out commission from margin?
Start with the net basket and deduct cost of goods, shipping, payment fees and an allowance for returns. What is left is the contribution margin before marketing. From that you decide the share you are willing to spend on winning a new customer. Commission plus all fees has to sit below it, otherwise you lose money on each sale.
At selecdoo you set the commission yourself and it is calculated on the net basket. On Starter a network fee of 30 per cent applies to the commissions actually paid. At 10 per cent commission the total cost is therefore 13 per cent of the net basket. The 500 euro deposit is offset against commissions and does not add to the cost. Prices are billed in EUR.
What do worked examples look like by margin?
The example below assumes a net basket of 100 euros and 10 per cent commission. Contribution margin means the amount before marketing. This is an illustrative calculation with assumed values, not industry data.
| Contribution margin before marketing | Commission (10%) | Network fee (30% of commission) | Total cost | What remains | Share of margin used |
|---|---|---|---|---|---|
| 30 euros | 10.00 euros | 3.00 euros | 13.00 euros | 17.00 euros | 43% |
| 40 euros | 10.00 euros | 3.00 euros | 13.00 euros | 27.00 euros | 33% |
| 50 euros | 10.00 euros | 3.00 euros | 13.00 euros | 37.00 euros | 26% |
At a 30 euro margin the channel uses almost half of your room, which is a tight business if the new customer does not return. At 50 euros much more remains. sendschafter sees little room for affiliate below a margin of about 20 per cent [1]. That is the source's view, not a fixed rule.
How does a different commission change the result?
The same sum can be run for different rates. The table assumes a net basket of 100 euros and a contribution margin of 40 euros. The values are assumed.
| Commission | Network fee (30%) | Total cost | Left of the margin |
|---|---|---|---|
| 5% | 1.50 euros | 6.50 euros | 33.50 euros |
| 8% | 2.40 euros | 10.40 euros | 29.60 euros |
| 12% | 3.60 euros | 15.60 euros | 24.40 euros |
| 15% | 4.50 euros | 19.50 euros | 20.50 euros |
Each percentage point of commission adds 1.30 euros of total cost per 100 euros of basket. That lets you judge quickly what an increase costs. You can try your own values in the commission calculator.
Is a higher commission for new customers worth it?
A higher commission for new customers is worth it if the new customer buys several times and you do not want to pay existing customers the same rate. The UK agency Why Matters recommends 15 to 20 per cent, on first-time customers only [2]. sendschafter advises checking after six months whether new customers make up at least 40 per cent of orders, and cutting commission for existing customers if not [1].
To judge this, work out the value of a customer over several purchases, not just the first basket. If repeat purchases reliably happen, the first order can carry less margin. Without repeat-purchase data this remains an assumption you should test after the first months.
How should you treat voucher sites?
Voucher and cashback sites often generate sales that would have happened anyway, yet they still provide reach. Why Matters suggests setting up several commission groups: a standard rate, a higher rate for content and creator publishers and a lower rate for voucher and cashback sites [2]. How much lower depends on your margin.
One possible middle path is half the regular rate. That is an experience from practice, not an industry standard. Decide the rule before launch and tell publishers about it.
Where is the upper limit for commission?
The upper limit is the rate at which commission plus network fee uses up your whole contribution margin. With a 30 per cent network fee on the commission, you divide the margin by 1.3. At a 30 per cent margin the limit is roughly 23 per cent commission, at 40 per cent roughly 31 per cent and at 50 per cent roughly 38 per cent. That is the zero-profit limit on the first purchase, not a target.
In practice you should stay well below it, because returns, cancellations and vouchers cost further margin. A commission that leaves only a small remainder on the first purchase works only if customers reliably return.
Why does the net basket matter?
At selecdoo the commission is calculated on the net basket, that is without shipping and VAT. That keeps the maths clean, because you pay commission only on what you actually receive. Ask every provider what the commission is based on, and clarify how cancellations and returns are handled before you compare offers.
What does a repeat purchase add to the calculation?
An example with assumed values shows why the first purchase is not all that counts. A new customer orders three times at a net basket of 100 euros, with a contribution margin of 40 euros per order. You pay 10 per cent commission plus 30 per cent network fee on the first order only, so 13 euros. Across the three orders you keep 120 euros of margin less 13 euros, which is 107 euros.
Whether the assumption holds depends on your range. Consumables are re-bought more often than furniture. How long a sale stays attributed to a publisher, and whether later purchases earn commission, should be set clearly in the programme and communicated to publishers before launch. That avoids disputes and keeps the commission on the first purchase defensible.
Which publisher types need which commission?
Different publishers do different jobs, so not everyone needs the same rate. The table sorts the types by role and shows what to consider. Specific percentages depend on your margin.
| Publisher type | Contribution to the sale | Consideration for commission |
|---|---|---|
| Content sites and creators | Recommendation, review, comparison | A higher rate can pay off because they create demand |
| Voucher sites | Closing the sale with customers who are ready to buy | Consider a lower rate or half the standard |
| Cashback providers | Discount for the customer, little effort of their own | Lower rate, clear rules on combining with codes |
The grouping follows the suggestion from Why Matters to use three commission groups [2]. It is a guide. After a few weeks, check which group actually brings new customers.
How do you adjust commission later?
Start with a rate you can hold and change it only once you have data. The early phase is for learning which publishers bring sales and which customers return. Tell publishers about changes early and keep to notice periods. A sudden cut without warning costs trust.
Conclusion
The right commission is one your margin can carry and that gives the publisher a real incentive. Work from contribution margin, include the network fee in the sum, and check after a few months whether new customers and repeat purchases confirm your assumptions. The commission calculator for your affiliate programme helps you try different rates. selecdoo is now opening to UK brands. You can start free or talk the numbers through in a Discovery Call. You can cancel with four weeks' notice to the end of a quarter. This article is not tax or legal advice.
Sources
- sendschafter (August 2026, date per URL 20 August 2026): Lohnen sich Affiliate-Netzwerke? Anbieterübersicht, Kosten und die To-dos vor dem Start (in German)
- Why Matters (15 October 2026): Awin for Shopify Brands: Costs, Setup and Commission Rates
Note: Both sources were accessed on 4 November 2026. The worked examples are assumed and are not a forecast.