How to Negotiate Higher Commissions as an Affiliate (+ Best Practices)

 Do you want to improve your affiliate commission rate but don’t know where to start? If so, you’ve made it to the right place!

Many new affiliates settle for the first commission rate offered by a partner. It makes sense; they are looking for an opportunity to get their career in motion, and this is a significant first step.

But after some experience and a proven track record of success, you’ll want to start negotiating your affiliate commission rate. In many cases, getting more than the first offer is possible, but you need the right strategy to make it happen.

Today, we will go over the challenges and opportunities that come with getting a fair commission for your work. You’ll also find some actionable advice for getting more partners to accept your offer.

Let’s dive in!  

Understanding Affiliate Commissions

Before we start sharing advice, we want to lay the groundwork so you can see the different types of commission structures and the factors that will determine your success.

Types of Commission Structures

Affiliate marketing is a very diverse field that’s certainly not one-size-fits-all. There are a few different payment structures you’ll want to learn about so you can find the one that aligns with your goals.

• Cost Per Sale (CPS) – This is by far the most common type of commission. You earn a percentage of each sale you get through your exclusive link or with a coupon code. This model works best for eCommerce and companies selling digital products.
• Cost Per Lead (CPL) – With this commission, you get a payout for each lead you generate for the company. In many cases, this involves getting them to join an email list, send a contact form, or sign up for a free trial.
• Cost Per Click (CPC) – CPC allows you to earn a commission each time someone clicks on your unique link, even if it doesn’t result in a sale or lead. Businesses use this affiliate structure when they want to increase traffic.
• Cost Per Action (CPA) – CPA is a broad commission structure where you get a kickback when someone watches a video, fills out a survey, or downloads a free app.

Factors that Impact Commission Rates

Now that you know the different ways to earn money with affiliate marketing, let’s explore the things that can affect your earnings.

• Industry Benchmarks – How much you make will vary based on your industry. For example, people in the fashion industry tend to make less per sale when compared to folks who work with B2B software companies. However, the latter typically makes fewer sales. You can see a breakdown across multiple niches and some interesting statistics on this below.
• Product/Service Value – High-value products often have much lower rates when compared to more niche products. Think of it this way: you would earn more at 5% if you sold a $1000 necklace than someone who gets 20% for a $70 pair of shoes.
• Competition – The number of affiliates promoting the same products in your industry could result in a lower commission rate. The reason for this is when there’s a lot of competition, affiliate marketers have less leverage unless they have the data to back them up.
• Your Value Proposition – This is probably one of the most important factors. Think about what makes you stand out. For example, do you have a highly engaged audience? Are you interested in a specific niche? Do you have a track record of driving traffic and sales? If so, you will have a better chance of improving your commission rate.

Preparing for Negotiation

The next step is to get everything together for your pitch. Having all of this on hand will make it much easier to prove that you deserve a higher commission than what was originally offered.

Know Your Worth

Before you can ask for more money, you have to understand the value you provide and be willing to articulate it in a way that makes sense

Your best bet is to start with concrete data. Review your key performance indicators and keep track of conversion rates, average order values, clicks, and earnings per click. You’ll also want to show testimonials from previous or current clients. 

It’s a good idea to tie these metrics back to real-world examples, too. So you could say something like, “My average conversion rate is 10%, which is three times the average for our industry.” Sharing these points will set you apart from everyone else.

Set Realistic Goals

It’s okay to aim high when pitching your offer, but it also needs to be grounded in reality. We suggest starting by figuring out your ideal rate. This will be different for everyone, depending on your experience and industry.

Once you’ve figured out the rate you’re willing to accept, go up a few percentage points from that so you can get closer to what you’d like to make.

We also highly recommend deciding on your low number, which means the lowest rate you’re willing to accept. Establishing these early will help you walk into your negotiation confident with what percentage you’d like to see and what you would consider accepting.

Build Strong Relationships

A mistake many affiliate marketers make is they are almost combative when asking for a rate increase. In reality, this should be a collaborative effort where you work with the affiliate manager and come to a mutual agreement.

The best way to do this is to start building rapport with your partners now. By working together and consistently meeting your goals, you’ll begin to build trust, which means they’ll be more likely to accept your offer.

Affiliate Commission Negotiation Strategies

Now that you have your plan together, it’s time to start pitching. We will take a look at some of the best ways to ask for more money per sale so you can figure out what approach would work best with your partners.

The Direct Approach

Sometimes, asking directly for a commission increase is the best strategy. This is actually relatively straightforward. You clearly state the rate you’d like to make and justify it by citing data from your previous work.

The pitch could go something like this, “Based on my consistent above-average conversions, I’m proposing a commission increase to X%.”

Delivering this message in a way that’s both confident and concise will help people see you as more professional. If people know you’re serious about what you do, they’re more likely to approve the rate increase.

The Value Approach

Another way you can score higher commissions is to make the pitch that the value you bring to the table is worth more than the rate they offer. The reason this strategy works is people are usually willing to pay a little more for something if it adds value to their lives or, in this case, their business.

Let’s say you’re an influencer with over 5 million subscribers. You would likely have a much better chance of getting a boost in pay if you use this as a leverage point.

In this case, you could say something like, “My content reaches 6 million subscribers with an average view count of 12 million. That’s 12 million chances for my audience to discover your brand. With this in mind, I believe my reach is worth X% commission per sale.”

Offering clear value to your partners like this is one of the most effective ways to accept your offer. Below are some additional tips for crafting your value proposition.

The Performance Approach

The next way to pitch is to ask for an increase after reaching certain performance milestones. This means you can establish the deal with your partners either at the start of the agreement or after you’ve worked together for a while.

Your pitch here will be straightforward. You could say, “I propose a commission rate of X%, increasing to Y%, after I make Z sales.” This shows brands that you’re willing to work hard to find them success, but they need to do something for you, too.

Many businesses will accept this offer because they don’t have to pay a higher rate until they see results from your affiliate marketing. They basically have nothing to lose and everything to gain.

The Industry Analysis Approach

There’s a pretty good chance other businesses in your niche are offering affiliate partnerships. If you’re willing to do a little homework, you can use this to your advantage.

You could say, “I’ve done some research, and the industry average seems to be X%, which is lower than what you’re offering. I’d be happy to work together if you can match this rate.”

If the company is offering a lower rate, there’s a good chance they’ll move up if you make a compelling case in a way that’s non-confrontational and fair.

The Added Service Approach

People are usually willing to pay more if they get several things included in a service. You can use this to your advantage when you’re trying to make more money with affiliate marketing.

For example, you could say, “I would be happy to do a sentiment analysis from my audience so I can give suggestions for future campaigns if you’re willing to increase my commission to X% for the added service.”

Many affiliate managers will embrace this kind of offer because they’re essentially getting more value for the promise of sales. If you’re confident you can pull off an additional service and you won’t overextend your resources, consider including it in your next pitch.

Overcoming Objections

We are hard-wired to take the path of least resistance. This often means being unwilling to budge once we get an idea in our minds. With this, it’s important to mention that almost every affiliate partner will have an objection, much like how people in sales know that most customers object before they buy.

So, you’ll need to anticipate these objections and come up with quick, clear, and value-driven rebuttals.

Let’s look at a few common objections and how you can get them to change their mind.

“Your Requested Commission Rate is Too High”

You can bet that this will be the most common objection you hear. Instead of just saying, “Okay,” consider using data to highlight why the rate you’re asking for is totally fair.

You’ll also want to use this time to show the industry average and any additional value you bring to the table.

“We Have Budget Constraints”

Many affiliate managers will say they can’t accept your offer because they have a specific budget they can spend. When this happens, explore other solutions.

Two pitches that work well here are the performance approach and the additional services approach. In the case of the first, they won’t have to pay more until you get them a decent return on investment, which might free up some cash to pay your new rate.

In the latter example, offering another service can save the company money in the long run, so they may be willing to agree to your rate.

“We Have a Standard Rate for Affiliate Partners”

If an affiliate manager gives this objection, the best thing you can do is show what you can do to make your services worth more than other people.

Businesses are always looking for tangible value. So, show what you’re capable of either through a performance-based pitch or by sharing data from previous campaigns that demonstrate why you’re worth the extra costs.

Best Practices for Handling Objections

• Be an active listener – Understand the underlying reasons behind the objection so you can address it head-on.
• Respond with data – Back up your claims with evidence.
• Offer alternative solutions and compromises – Be flexible and willing to negotiate.
• Focus on mutual benefit: Frame your responses in terms of how they benefit the partner.
• Maintain a professional and positive attitude: Remain respectful and non-confrontational.

Final Thoughts

It can feel uncomfortable to ask for a higher commission rate, especially if you are still building your brand. However, if you have the data and are willing to negotiate, there’s a good chance you can earn more from your work.

Try to remember that you’re offering a helpful service that helps businesses generate leads while also boosting visibility and sales. These are all extremely valuable, so don’t sell yourself short.

You may need to pitch a few times before you get your pitch right, but before long, your mindset will shift, and you’ll begin to feel comfortable asking for the affiliate commission rate you deserve.