Understanding exactly how your commissions are calculated ensures there are no surprises for you or your affiliates when it comes to payouts.
Commissions are calculated on the order subtotal after discounts have been applied, and before shipping, taxes, or tips are added.
Example Calculation
If an affiliate has a 15% commission rate and refers an order with the following breakdown:
Original Product Subtotal: $110.00
Discount Applied: -$10.00
Shipping Cost: +$10.00
Taxes: +$15.00
Total Charged to Customer: $125.00
The commission is calculated as follows:
Commissionable Value: $100.00 ($110.00 subtotal - $10.00 discount)
Final Commission Earned: $15.00 (15% of $100.00)
Important Rules to Remember
Shipping & Tax Exclusion: Shipping fees and taxes are pass-through costs for your business, so they are excluded to protect your margins.
Discount Impact: If a customer uses a 50% off coupon, the affiliate's commission is cut in half accordingly.
Refunds: If a partial refund is issued on the subtotal, the commission will automatically decrease proportionally.