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Flat Commission

Flat Commission

Noun

A flat commission (also called a flat reward) is a commission structure where partners are paid a fixed amount of money for a sale as opposed to a percentage of the deal. The amount paid for the lead or referral is the same regardless of the value of any potential sale that could occur as a result.

Commissions and rewards can also be paid as a percentage of the value of the sale made as a result of the lead or referral. Neither approach is wrong as long as your commission structure is appealing enough to incentive partners. When offering flat rewards, vendors should be aware of the risk of bad leads being sent for the purpose of earning money.

Example:

If a referral program paid $20 for every qualified lead it was sent, that would be a flat reward or commission.

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