As you probably know, you can only assign an affiliate to one offer. But there are other ways to customize your commission structure to meet your goals.
One of these customizations is the ability to set different commissions at the product — or SKU — level. You can include as many SKUs as you want. You can add them individually or in bulk, by uploading a SKU commissions list. They just need to match up with SKUs in your store.
Please note that Product-Level Commissions are NOT available on all plans.
When SKU-level Commissions Come in Handy
If you have a product that has a lower margin, you may want to offer a lower commission rate to match. Or, you might want to incentivize affiliates to refer products with a higher margin by offering a higher, matching commission rate. Additionally, businesses can use product-level commissions as part of a broader strategy to simplify affiliate management. For instance, consolidating affiliates into a single Offer with product-specific PLC rates not only ensures accurate payouts but also streamlines operations by supporting a single affiliate link for promoting all products within the catalog.
How We Calculate Them
We check every order to see if any sales contain SKU-level commissions. If so, we apply that special commission rate to those items. (Other products in the order keep the Offer’s default commission.) Refersion also processes discounts and commissions differently based on the level of application. Discounts applied to orders are calculated using the offer-level commission rate, while product-level commissions remain based on the individual selling price of the SKU. Merchants often adopt one of two common strategies when combining commissions and discounts: maintaining the full affiliate commission rate despite discounts extended to customers, or adjusting the commission rate to mitigate losses from the discount. These strategies allow businesses to tailor their approach based on profitability goals and create clear communication with affiliates.
Important Note: The Refersion platform currently only receives and reads discount amounts at the order level and not at the product level. This means that discounts are processed using the offer-level commission rate, even for SKUs with product-level commissions. The system uses product-level commission rates to calculate earnings for SKUs while adjusting for discounts based on the offer-level commission rate. For associated implications, see the examples and key insights provided below. It is crucial to align these considerations with your affiliate communication strategy, ensuring transparency about how discounts influence their earnings.
Key Insights
Product-level commissions rely solely on the SKU's selling price and are unaffected by discounts.
Offer-level commission rates are used to calculate any adjustments arising from discounts, ensuring accurate calculations for the order as a whole.
Best Practices for Product-Level Commission Attribution
Configure a single Offer and set product-specific PLC rates to streamline affiliate operations.
This approach promotes ease of tracking, ensures the accuracy of payouts, and offers affiliates a unified link for promoting all products included in the Offer.
If a SKU has a product-level commission of 5% and is sold for $35, the affiliate earns 5% from the selling price, equating to $1.75. However, if there’s a discount applied at the offer level using a 3% offer-level rate, the resulting discount and adjustments are not directly tied to the product-level commission.
How to Set Up SKU-level Commissions
2. Click on an Offer Name from the list (or, create and save an offer; then go back to add).
3. Click Product Level Commissions from the menu on the left.
4. Click the Add SKU button.
5. Enter the Commission Details.
Note: Product description is optional, but it is highly recommended to make it easier to see what product the SKU applies to.
6. Click Create.
How to Search Through Your SKU-level Commissions
If you have many SKUs uploaded to a particular offer and you need to search through them quickly, then you can use the search functionality:
Simply type the name or SKU of the product that you’re looking for, and click Search. All uploaded PLCs that contain your search terms in either the SKU or product name will appear:
You can click the X button under Clear Search to clear your search and go back to displaying all PLCs uploaded under the offer
Integrating SKU-Level Commissions Within Offer Management
SKU-level commissions operate under the umbrella of Refersion's collective offer settings. Any changes made to an Offer, including PLC rates, automatically apply to all affiliates assigned to that Offer. By leveraging these collective settings, businesses can ensure consistency while strategically managing commission structures for affiliates.