How partner commission works
Partner commission aligns incentives. A partner brings a lead, referral, customer, or deal, and earns compensation when that activity turns into revenue.
Commission can be a flat fee, percentage of first-year revenue, recurring percentage, reseller margin, or tiered payout based on partner level.
Common commission models
- Referral fee - paid when an introduced customer closes.
- Affiliate commission - paid for tracked self-serve conversions.
- Reseller margin - partner buys or sells at a margin.
- Recurring commission - partner earns a percentage for a defined retention window.
- Tiered commission - higher partner tiers earn better rates.
What to define clearly
Your partner agreement should define attribution window, payment timing, refund clawbacks, eligibility rules, source vs influence definitions, and what happens when multiple partners touch the same deal.