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Referral bonus

Also called referral reward, refer-a-friend bonus, recruitment bonus.

Short answer

A referral bonus is a one-off or time-limited reward for referring a new affiliate or store to an affiliate network or program. The bonus is separate from the commission the recruited person earns on their own sales.

Definition of Referral bonus.

A referral bonus is triggered when a person you have referred via a referral link signs up and meets the program's requirements – for example a first approved sale or another activity threshold, so the bonus cannot be triggered by empty sign-ups. The bonus can be a fixed amount or a share of the recruited person's activity for a limited period.

The most important thing to clarify is who pays. The test is simple: is the bonus taken from the recruited person's own earnings, or is it added on top as a cost for the network or program? The answer decides whether being recruited costs anything – and therefore whether the referral link is a pure recommendation or a hidden cost for the recipient.

The activity requirement is the bonus's safeguard against abuse. Without it, the bonus could be triggered by mass sign-ups, accounts created by the same person or collusion between 2 parties. By tying the payout to real activity – an approved sale, not just a sign-up – the bonus is only paid when the referral has actually created value.

Referral bonus vs. two-tier commission

AspectReferral bonusTwo-tier commission
Triggered bythe recruited person getting startedthe recruited person's ongoing sales
Forma one-off amount or a limited perioda lasting percentage of the recruited person's commission
Purposerewarding the recruitment itselfgiving a lasting interest in the recruited person's activity

A referral bonus pays for the recruitment once – two-tier turns the recruited person's future revenue into an ongoing source of income.

How it goes wrong

  • 01

    Chasing bonuses without quality

    Recruiting inactive sign-ups gives nothing when the bonus requires activity – for example a first approved sale. Refer people who genuinely want to work with affiliate marketing rather than spreading the link widely.

  • 02

    Unclear who pays

    Read the terms before sharing your referral link. If the bonus is deducted from the recruited person's commission, you are in effect recommending a worse deal than it appears to be.

At Affilyflow

Referral bonus in practice

At Affilyflow the referral bonus is paid by us. The recruited affiliate keeps their full commission – the bonus is a cost on our side, not a deduction from the person you refer. That makes the recommendation free for the recipient.

Frequently asked questions

What is a referral bonus?

A referral bonus is a reward for referring a new affiliate or store to an affiliate network or program. It is triggered when the referred person signs up and meets the program's activity requirement, and it is separate from the commission on ordinary sales.

Is the referral bonus taken from the referred person's earnings?

It depends on the program – always check whether the bonus is deducted from the recruited person's commission or paid on top. At Affilyflow the bonus is paid by the network, and the recruited affiliate keeps their full commission.

What is the difference between a referral bonus and two-tier commission?

A referral bonus rewards the recruitment itself with a one-off amount or for a limited period. Two-tier commission gives an ongoing percentage of the recruited person's commission for as long as they are active in the program.

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