Reading a commission contract
Commission agreements are short and almost every expensive surprise lives in a single sentence. Read these five clauses before you send the first link.
Attribution and last-click rules
The attribution window tells you how long a click counts. The last-click rule tells you who gets credit if the buyer returns through another partner. A ninety-day window with last-click attribution is far weaker than it looks if the buyer is being retargeted by everyone.
Look for a named-referral option. A code or a manual registration is the only attribution that reliably survives a long sales cycle.
Clawbacks and refund windows
A clawback clause lets the vendor reverse commission if the customer cancels or refunds. That is reasonable within a stated window, and unreasonable when the window is open-ended or applies to renewal commission you have already been paid.
Write down the clawback window next to the commission rate. If it is longer than the customer's typical use period, discount the program in your planning.
Tiers, resets and thresholds
Tiered programs pay more as you sell more, but many reset annually or quarterly, which quietly caps what a growing partner earns. Check the reset date against your own seasonality.
Payout thresholds matter more than partners expect: a 200 dollar minimum on a 30 dollar commission means you wait months to see anything.
Exclusivity and non-compete
Some programs ask you not to represent a direct competitor. That can be fine for a specialist and fatal for a generalist running several vendors in one category. Read it before you apply, because it is rarely negotiable after the fact.
If a clause is unacceptable, ask for a written amendment. A clear no is easier to work with than a silent penalty later.
TAKEAWAYS
- Attribution window plus last-click rule defines what your click is worth.
- Cap your exposure to open-ended clawbacks.
- Check tier reset dates and payout thresholds before committing.