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How to set a percent or flat recurring commission for affiliates

Step by step for setting a percent or flat recurring commission for affiliates, what to have ready, and a tool that can run it.

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Uncommon Comforts is published by the team behind Connections, whose products are compared here alongside other tools.

To set a recurring commission for affiliates, first pick whether to pay a percent of each recurring subscription or a flat amount, then decide how many months the commission continues, agree on what counts as a qualified referral, set a hold window before payout, and choose a tool that tracks each referral and pays out through a card payment service. Each affiliate gets a signup page and a personal link.

What to checkConnections ReferralsWhat to check in another tool
Commission termA commission can be limited to a set number of months [1]Whether the tool can stop a commission after a set number of months
Payout methodPayouts go out through Stripe, the card payment service, when the hold window closes [1]How the tool pays advocates and whether a separate payment account is needed
Cost of the toolA free plan with no card needed [1]; takes no percentage of referral sales and adds no fee to payouts [1]What the tool charges and whether it takes a cut of referral sales
Self-referralSomeone who tries to refer themselves gets no reward [1]Whether the tool stops an advocate from earning on their own account

What you need before you start

For a SaaS founder running an affiliate program, decide the commission type first: a percent of the recurring subscription revenue, or a flat amount per qualified signup. Decide how long the commission runs, for example a set number of months of the customer's subscription. Decide what counts as a referral and what counts as a qualified referral, since that decides which advocates get paid. Set a hold window in days between the referral and the payout, and tell advocates about it before they join [1]. Choose a reward, and the reward can be account credit [1]. Pick how advocates will be paid, which means naming a card payment service you already use. Have a public affiliate signup page that needs no sign-in so any partner can join without being chased [1]. Have a referral link that a friend can open and follow, and decide how a self-referral is handled [1]. Have a way to review each referral and reject one with a reason the advocate can see [1]. Finally, set a payout day tied to the end of the hold window.

Step by step

  1. Pick the commission type. A percent commission pays a share of what the referred customer pays, so it grows when the subscription grows. A flat commission pays the same amount per qualified referral, which is easier to budget but does not scale with the plan.
  1. Set how long the commission runs. A recurring commission can be limited to a set number of months, so decide that term before you tell anyone [1]. A shorter term costs less per customer; a longer one attracts more affiliates.
  1. Define a qualified referral. State what the advocate must do and what the friend must do for the referral to count. Keep this rule where the advocate can read it before joining, along with the reward hold period in days [1].
  1. Set the reward and the hold window. Pick the percentage or flat amount and the days the reward holds before it can be paid. Tell people the hold period up front [1].
  1. Give every affiliate a signup page and a personal link. Each advocate joins through a hosted public page that needs no sign-in [1], then copies a link or shares it by email, X or WhatsApp [1]. A referred friend lands on a public page that also needs no sign-in [1].
  1. Review each referral. The program owner approves or rejects each one, and a rejection needs a reason the advocate gets to see [1].
  1. Confirm the tracking works. A small script reads the referral code from the link's URL and stores it, so the right advocate gets the credit [1]. Block self-referral so someone who refers themselves gets no reward [1].
  1. Pay when the hold window closes. Payouts go out through Stripe, the card payment service, when the hold window closes [1].

Tools that can do it

Connections Referrals is made by the team that publishes this site. It runs as a web app and a 'Start a program' button opens the setup from the front door [1][1]. Sign-in uses the shared Connections account through Main Connections [1].

In this tool you can set up a program where external partners promote you for a commission [1], limit a commission to a set number of months [1], or make the reward account credit [1]. Advocates join through a hosted page that needs no sign-in [1], and each program shows clicks, referrals, qualified referrals and the reward owed [1]. Payouts go out through Stripe, the card payment service, when the hold window closes [1]. The front-door copy states a free plan with no card needed [1], that it takes no percentage of referral sales and adds no fee to payouts [1], and the feature catalog lists no paid tier gate for Referrals [1]. Your server can verify the signature header on each webhook [1], and the programs you select can be exported [1].

Other affiliate and referral tools also run recurring commissions. Their details are not covered here, so before choosing one, check the table below and ask each vendor about the points shown.

Common mistakes to avoid

A common mistake is never saying how a qualified referral is defined, which leads to disputes at payout time. Another is skipping the hold window, so a customer can cancel and the reward is still paid. Tell advocates the hold period in days before they join [1]. Some programs forget to block self-referral, so an advocate quietly earns on their own account; decide this rule up front [1]. Another mistake is paying before reviewing each referral, when a rejection should need a reason the advocate can see [1]. Also avoid a payout method that adds a fee you did not plan for; check whether the tool takes a cut or adds a fee to payouts [1]. Finally, never assume a program tracks correctly: confirm the click and referral counts each period, and export the records you select so you can check them [1].

Things to check before you choose

When picking a tool, ask how the commission term is set, whether the reward can be a flat amount or a percent, how long a hold window you can set, and how advocates are paid. Confirm whether self-referral is blocked, whether there is a hosted signup page that needs no sign-in, and what fees apply beyond any payment service charges. The table below compares what Connections Referrals states against what to verify in another tool.

Frequently asked questions

What is the difference between a percent and a flat recurring commission?

A percent commission pays a share of what the referred customer pays, so the amount can change when the subscription grows or shrinks. A flat commission pays one set amount per qualified referral and does not change. Both can run for a set number of months, so the main choice is whether you want the payout to track the customer's plan value or stay fixed.

How long should a recurring affiliate commission last?

A recurring commission is often limited to a set number of months of the customer's subscription, not the whole life of the account [1]. Choose a term that covers the cost of acquiring the customer and still leaves you a margin. A shorter term lowers your cost; a longer one attracts more advocates. State the term clearly before anyone joins.

When should an affiliate be paid for a referral?

Pay after the hold window closes, not at the moment of signup, so a customer who cancels or is not qualified does not produce a payout. Payouts can go out through Stripe, the card payment service, when the hold window closes [1]. Tell advocates the hold period in days before they join [1].

How is a qualified referral defined?

A qualified referral is what you decide it is, so state it in writing before advocates join. It usually means the friend signed up through the advocate's link and met a condition, such as staying past the hold window. The program owner reviews each referral and approves or rejects it, and a rejection needs a reason the advocate can see [1].

Can a referred friend use the link without signing in?

A referred friend can land on a public referral-link page that needs no sign-in [1], and advocates join through a hosted public signup page that also needs no sign-in [1]. A small script reads the referral code from the link's URL and stores it, so the right advocate gets the credit [1].

Connections Free costs $0, and going over a limit stops the feature rather than billing you. [1] Connections Pro, the first paid plan, is $39.99 a month and adds premium features across every Connections product. [1]

Try Connections Referrals

Sources

  1. Connections Referrals' own description of itself (the product of this site's publisher)

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