Affiliate commission structures for subscription products
Bounty, recurring percentage, duration, tiers and hold periods explained with worked numbers, plus how refunds and chargebacks are clawed back.
A subscription commission rule has four parts: what you pay on the first payment, what you pay on each later payment, for how many months, and what unlocks when a partner performs. Everything else (cookie windows, hold periods, clawbacks) is about when money becomes payable.
The four dimensions
| Dimension | Options | Typical |
|---|---|---|
| First payment | nothing · fixed bounty · percentage | $10 bounty or 100% of first month |
| Recurring | nothing · percentage · fixed amount | 20% of each payment |
| Duration | 6 · 12 · 24 months · lifetime | 12 months |
| Tiers | bonus at N customers · higher % at N customers | $50 at 10, 25% at 50 |
A worked example
Take a $29/month plan with a $10 bounty plus 20% recurring for 12 months. One customer who stays the full year earns the partner $10 + 12 × $5.80 = $79.60. At 100 such customers the partner earns $7,960 and you keep $26,840 of $34,800. If the same partner reaches 50 paying customers and the rule steps up to 25%, the recurring part rises to $7.25 per payment from that point on, for new and existing customers alike.
What happens on refunds
Commission is never edited; it is reversed. A full refund of a payment creates a negative record equal to the commission on that payment, including the bounty if the refunded payment was the first one. A partial refund reverses the percentage part proportionally and leaves fixed bounties alone unless the whole payment comes back. A chargeback is treated like a full refund. Negative balances carry into the next payout rather than being written off.
Hold periods and payout thresholds
Commission sits in a pending state for the hold period, usually 30 days, so refunds inside the window reverse it before it is paid. After the hold it becomes available. A minimum payout, commonly $50, batches small balances until they are worth a transfer. Partners can see pending, available and paid amounts separately; mixing them is the fastest way to lose trust.
Mistakes to avoid
- Paying on trials or signups. Pay on money received.
- Lifetime recurring as a default. Offer it to specific partners instead.
- Changing the rule retroactively. New rules apply to new commissions; past records stand.
- Mixing currencies in one balance. Keep one balance per currency.