Learn everything there is to know about initial commission. Explore our experienced definition, examples, and FAQs.
Initial commission
Initial Commission, sometimes referred to as Initial Referral or Sign-Up Commission, is a type of commission earned by an affiliate for referring a customer to a merchant for the first time. It is the commission earned on the first purchase or sign-up of a customer, and is usually higher than the commission earned on subsequent purchases.For example, let's say an affiliate promotes a digital product that costs $30 and offers an initial commission of 50%. If the affiliate refers a customer to purchase the product, they will earn a commission of $15. This commission will be earned on the first purchase of the customer, regardless of how many times the customer makes subsequent purchases.In some cases, affiliates will also earn commission on subsequent purchases of customers they have referred. This is often referred to as a recurring commission. For example, if the same product has a recurring commission of 25%, the affiliate will earn an additional $7.50 if the customer makes a second purchase.
