What an affiliate commission is
An affiliate commission is the payment a brand makes to a creator for each sale traced to that creator, usually a percentage of the order value. Attribution comes from a tracked affiliate link, a discount code, or a platform system such as TikTok Shop. Commission is earned only when someone buys, so the brand pays for results rather than content.
It is the opposite payment model to a UGC fee. Under a UGC fee the creator earns the same whatever sells, because the brand is buying footage for its own ads. An affiliate is paid on sales and carries the performance risk. Many brands combine them, a small flat fee plus commission, which is the usual shape of a TikTok Shop affiliate deal.
How commission works in creator programs
The brand sets a rate, an attribution window and payout terms, then gives each creator a link. Clicks that convert within the window are credited to the creator. Many programs calculate commission on net revenue after discounts and returns, which is worth stating in writing because creators sometimes assume gross.
Commission alone rarely buys good content from established creators, because the creator carries all the risk. It works best with creators who already post in your category, or alongside product seeding, where the free product opens the relationship and commission is the ongoing incentive.
A worked example
A home fitness brand offers creators 15 percent commission on net sales, a 30-day attribution window and monthly payouts. One creator's link drives 40 orders at an average of 80 dollars. After two returns, net sales are 3,040 dollars and the commission is 456 dollars.
The brand compares that 456 dollars with what it would have paid in CPA for the same 38 customers through ads. If the creator is cheaper per customer, the brand raises that creator's rate or adds a flat fee to secure more posts. The campaign ROI calculator runs that comparison.
Common mistakes
Setting one rate for everyone. A creator who drives repeat buyers at a high order value is worth more than one who sends bargain hunters, and a single program rate either overpays the second or loses the first.
Unclear attribution is the other problem. If a customer clicks one creator's link and uses another creator's code, decide in advance who gets credit, and watch for codes leaking onto coupon sites where nobody earned them.
How it's used
Let's keep commission at 15 percent but add a 200 dollar flat fee for her. She's out-selling everyone else on the program.
Commission is paid on net sales after returns, 30-day click window, paid monthly on the 15th.