Average Affiliate Marketing Commission Rate
Both affiliate marketers and affiliate programs want to find the commission rate that works for both parties. Of course you’ll find that affiliate marketers want to get paid the highest commission rate possible while most companies want to pay as little as they can. This difference in desire we’re going to balance, by going over the average affiliate marketing commission rate.
This data has been collected from research, our experience being affiliate marketers for over 20 years, and from other affiliate marketers we regularly work with. Having been paid a variety of commissions while being an affiliate, we’re able to average out what the expected affiliate commission should be.
What Is The Average Affiliate Marketing Commission Rate?
You’ll find that the average affiliate marketing commission rate is 30%. The percent of commission you are paid differs however depending on the industry you are in, and the affiliate program you promote for. This average affiliate commission rate may change depending on the competitiveness of the industry as it grows.
If the industry you are in usually generates higher profit margins, then you’ll get paid a higher commission. Usually this tends to be around 20-50%.
If you promote in an industry that has very low profit margins, then you’ll get paid smaller commission. Usually this tends to be around 3-10%, which is an average percentage for most affiliates in low profit margin industries.
Affiliates being paid well is important for affiliate programs to be successful, and for affiliate marketers themselves to be successful.
Average Affiliate Commission Rates For Every Industry
Yes, there are different commission rates that change depending on the type of industry you are an affiliate in. We’re going to highly these other average rates per industry and niche. You’ll notice that there is a wide range of different commission percentages paid to affiliates across the board. Here’s the list of average commission rates for each industry…
- Software or SaaS: 20-50%
- Home Goods: 1-5%
- Pet Supplies: 1-5%
- Investing: 5-10%
- Luxury Goods: 20-40%
- Health: 10-20%
- Business: 10-50%
- Agriculture: 1-5%
You should choose the industry that you are passionate in, that also will enable you to earn affiliate marketing commissions that make your affiliate business profitable.
Does Affiliate Commission Rates Change Depending On The Industry?
Yes, every industry pays different levels or percentages of commissions. You’ll find that niches within different industries also pay different affiliate commission rates as well. And, each industry tracks affiliate sales differently.
You’ll want to choose to be in an industry that pays a generous commission rate for the amounts of sales you can generate.
Should You Promote An Affiliate Offer That Has A Low commission Rate?
It depends. Most affiliate marketers should only consider promoting a low commission commission rate offer if they have a variety of other higher paying offers that are generating income. Another reason to consider promoting a lower commission rate affiliate offer is if it is a supplemental affiliate offer to another you have.
Otherwise, no. You want to always be promoting the affiliate offer that pay you the highest percent of the sale possible. The only real exception to this rule, would be if the lower commission rate offer – converted higher then the higher commission offer.
What Is A Good Commission To Expect From Most Affiliate Programs?
An acceptable and good commission rate for most affiliates is 20% or higher. Once you get below 20% then affiliate marketers feel less incentivized to promote an offer. However, this does change by industry since some industries on average pay above 20% commissions, while other industries only pay below 20% in commissions.
A good affiliate program will ways make sure to pay each affiliate fair commission rates. If they don’t they will lose quality affiliates to other programs that are willing to pay their affiliates more.
How Much Commission Does The Average Affiliate Earn?
The average affiliate marketer earns between $42,000 – $83,000 per year. This of course changes depending on the niche they are in, their commission rates, and how well their affiliate business is optimized. Affiliate commissions can fluctuate depending on a variety of factors.
Your commission as an affiliate can also change depending on if you receive commission bonus payments for referring a large number of sales.
Your typical affiliate commission rates change all the time, however your average commission rate across industries usually tends to stay the same.
if you’re an affiliate marketer you’ll want to become an affiliate for offers that stick to this average rate. If you are an affiliate program owner, then you’ll want to also make your payout percentage per sale around the same.
Affiliate commission rates are important because they dictate how much an affiliate gets paid, and how much an affiliate program must pay out.
We hope you enjoyed this affiliate marketing article, we wish you the best. And hope you earn as much commission as possible along your affiliate journey!
With our kindest regards,