A commission structure is how a company compensates partners based on the revenue they generate for the business. Commission structures can vary greatly and they might pay out partners for closed sales, traffic driven to a website or qualified leads generated.

Typically there is a base payout that can also include payout increases or bonuses as partners drive more revenue or hit different milestones. Commission structures are the backbone of a partner program and are the best tool for keeping partners motivated and engaged.

A well-designed commission structure should be compelling and offer commission that excite partners to join. It should also be set up in a way that continues to nurture and pay out top-performing partners so they are motivated to reach even higher goals.

Note that commission structure usually varies between partner types; affiliates who drive leads may earn less commission per lead, whereas resellers who have more hands-on involvement in the whole sales process usually would earn more.