Flat Commission

A standard, non-tiered payment given to partners per transaction or referred customer.
Explanation:

Flat Commission refers to a fixed, non-tiered payment structure in which partners receive a set amount of money for each transaction, sale, or referred customer they generate. This straightforward model provides clear and predictable compensation, making it especially useful for affiliate programs, referral partnerships, or early-stage partner initiatives.

Key components of Flat Commission often include:

  • Fixed Payout Amount: A pre-determined reward (e.g., $100 per sale or $50 per lead) that partners earn for each qualifying action they drive.
  • Simple Tracking and Payment: Easy-to-manage systems using affiliate links, promo codes, or form submissions to identify and validate partner contributions.
  • Low Administrative Overhead: Fewer variables to monitor and reconcile, reducing complexity in commission calculations and payout processing.
  • Partner Transparency: Partners know exactly what they’ll earn for each action, which can simplify motivation and decision-making, especially in high-volume programs.
  • Common in Affiliate and Referral Models: Often used in programs where deals are low-complexity, one-time purchases, or where partners are not involved in full-funnel sales support.

Flat Commission models are common in affiliate marketing, influencer campaigns, and direct-to-customer referral programs. They’re ideal for companies seeking to launch scalable, easy-to-administer partner incentives without extensive customization.

Example:
The company offered a flat 15% commission across all partner deals.

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