Commission-based Affiliate Programs
Commission-based programs are by far the most common type of affiliate program. They are nearly always pay per sale programs, i.e. they pay a predetermined % commission on the revenue generated by the sale of products or services to a visitor who came from your site.
Some programs offer incentives to more productive webmasters in the form of an increased commission share on a sliding scale, or by offering their best-performing webmasters cash bonuses or prizes. Many programs operate on a flat commission rate, irrespective of the volume of sales. A few curious programs "penalize success" by capping or reducing commissions once affiliates go over a certain monthly revenue level (e.g. an affiliate program may pay out a maximum of $500 monthly commission per affiliate). Always read the fine print of the Affiliate Agreement carefully to avoid affiliate programs that tie your hands in this way.
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