PartnerPilot utilises a unique approach to partner rewards through a commission-to-product exchange system. Instead of direct monetary payments, partners earn commission credits that can be exchanged for products from your catalogue. This guide explains how the system works and how to set it up effectively.

Basic Principles

When partners promote your products or services, they earn commission credits rather than traditional cash payments. These credits can be exchanged for products from your store, creating a gift card-like system that:

• Encourages deeper brand engagement
• Ensures partners gain firsthand product experience
• Maintains value within your business ecosystem
• Simplifies reward distribution

Setting Up Your Commission Structure

PartnerPilot offers a flexible system to create a commission structure that aligns with your business goals. Here's how to set it up:

1. Navigate to the "Commissions" section in your PartnerPilot dashboard.
2. Under "Default commission," you'll see three commission types: a. Percentage b. Flat rate per item c. Flat rate per order
3. Choose your preferred commission type by clicking the appropriate button.
4. For percentage-based commissions, enter the desired percentage in the "Commission amount" field. For example, entering "5" sets a 5% commission rate.
5. Click "Save changes" to apply your new commission structure.

Types of Commission Structures

a) Percentage-based Commission:

• • Partners earn a fixed percentage of each sale they generate.
  • Example: If you set a 5% commission and a partner generates a £100 sale, they earn £5.
  • Best for: Products with varying prices or when you want commissions to scale with order value.

b) Flat Rate per Item:

• • Partners earn a fixed amount for each item sold, regardless of the item's price.
  • Example: £10 commission per item sold.
  • Best for: When you have a single product or want to incentivise volume sales.

c) Flat Rate per Order:

• • Partners earn a fixed amount for each completed order, regardless of items or total value.
  • Example: £15 commission per order.
  • Best for: When you want to simplify your commission structure or encourage partners to drive complete transactions.

Monitoring and Optimising Your Commission Structure:

1. Regularly review partner performance in the Analytics section.
2. Analyse which commission structures drive the best results for your business.
3. Gather feedback from top-performing partners about your commission rates.
4. Stay competitive by researching industry standards for commission rates.
5. Test different commission structures and analyse their impact on sales and partner engagement.

Conclusion

A well-designed commission structure is key to a successful affiliate program. It motivates partners to promote your products effectively while ensuring profitability for your business. Use PartnerPilot's flexible tools to create, monitor, and optimise your commission strategy. Remember, the most effective commission structures balance partner incentives with your business objectives.

For further assistance in setting up or optimising your commission structure, don't hesitate to contact our support team or explore our other resources on affiliate marketing strategies.