Should You Offer Flat Fees or Percentage Commissions on Payhip?

But if you’re a digital product creator using Payhip, the way you pay your affiliates can actually make or break your growth strategy. And yes, we’ve all been there, staring at the affiliate settings wondering, “Wait… which one makes more sense for my business?”

The truth? There’s no one-size-fits-all answer. But there is a smarter way to think through the pros, cons, and what actually motivates people to promote your stuff. So let’s break this down, not like some corporate whitepaper, but like someone who’s been in the trenches—testing, tweaking, and sometimes messing it all up before getting it right.

What’s the Difference Anyway?

Let’s get the basics out of the way first.

• Flat Fee: You pay your affiliates a fixed dollar amount per sale, like $10 for every ebook sold.

• Percentage Commission: You pay a cut of the total sale, like 30% of whatever the customer spends.

Payhip lets you set either one, per product. Which is awesome because that means you can test both. But before you hit save on those settings, let’s talk through what actually works in real life.

When a Percentage Commission Just Makes More Sense?

If your prices vary or if you plan to raise them later, go percentage. Seriously.

I once talked to a fellow creator who priced their online course at $97 and gave affiliates a 50% commission. That was nearly $48 per sale—and affiliates loved it. But then they bumped the course to $197 (after a few testimonials rolled in), and now affiliates were getting $98 per sale for the same effort. That’s powerful. It scales with your pricing.

Why percentage works best for many products:

• It motivates affiliates to push high-ticket items.

• It adjusts automatically as you run discounts or increase pricing.

• It makes your offer look more generous, even 30% feels big when the price tag is $150.

Payhip handles all the math behind the scenes, so no, you won’t need a calculator every time someone checks out.

But here’s the thing, don’t get greedy. If you set a commission too low (like 5–10%), most people won’t bother promoting it. Aim for at least 30% for digital products. For lower-priced offers? Go even higher. That $7 ebook? Offer 70%. It’s digital—you’re not losing anything physical.

When a Flat Fee Actually Works Better?

Flat fees are underrated. Especially if you sell one product at one price, like a $10 checklist or $19 planner.

Let’s say you set the affiliate payout to $5 per sale. That’s easy math. Everyone knows what they’re getting. And if your product is priced low, percentage commissions can feel… sad. Like, “Wait, I only made $1.80 for that sale?”

Flat fees are perfect when:

• Your price point is under $25.

• You want to make your affiliate program feel instantly attractive.

• You’re promoting on marketplaces where clarity matters (e.g., “Earn $5 every time someone downloads this!”)

It’s especially helpful when your audience is newer to affiliate marketing. They’re not used to calculating percentages on the fly. But tell them they’ll get five bucks every time someone buys? That’s something they can picture.

What About Mixed Models?

Here’s a fun twist: You don’t have to pick just one.

On Payhip, you can set a default commission for all products and override it per product. That means you could offer a flat $10 for your ebook, but a 40% commission on your full course. Smart, right?

This is what pros usually do:

• Flat fees for low-ticket items to keep it simple.

• Percentage commissions for higher-ticket items to scale affiliate earnings.

• Bonus incentives for affiliates who hit sales milestones (e.g., “Sell 10, and I’ll throw in a $50 bonus”).

If you ever wonder why one affiliate program takes off and another flops—it’s often in how the reward feels. When people know they can earn real money with a few sales, they lean in harder.

What’s the Best Choice for You?

Here’s the honest answer: Test it.

If you’re launching a product, start with percentage—especially if you plan to bundle or run promos later. If you’re offering something simple and low-cost, flat fees might make your life easier.

Still not sure? Ask your audience. Some creators literally put up an Instagram poll: “Would you rather earn $5 per sale or 40% of the product price?” The answers surprised them and shaped their whole program.

But whatever you choose:

• Be transparent about the payout.

• Pay consistently and on time.

• Celebrate your affiliates and their wins.

Because at the end of the day, people promote creators they trust. The commission is the cherry on top.