Let's Look at Some Real Examples

To help you understand exactly how this works in practice, we've put together four different scenarios. Each one shows a different discount level and how it affects both what the customer pays and what you earn. All examples are based on a $100 plan purchase.

Example 1: The Full Commission Approach (No Discount)

This is your maximum earning scenario. You're keeping all 60% of your commission and not offering any discount to the customer.

Customer's Perspective:
  • Original plan price: $100.00
  • Discount received: 0%
  • Final amount they pay: $100.00

The customer pays full price. This works well when you've got a hot lead who's already sold on the product and doesn't need an incentive to sign up.

Your Earnings Breakdown:
  • Company's share: 40% = $40.00
  • Customer discount: 0% = $0.00
  • Your commission: 60% = $60.00

This is your highest possible earning from a $100 sale. You pocket a full $60, which is an excellent return for referring a single customer.

Example 2: The Balanced Strategy (20% Discount)

This is a nice middle ground. You're giving the customer a meaningful discount while still earning a solid commission for yourself.

Customer's Perspective:
  • Original plan price: $100.00
  • Discount received: 20%
  • Amount saved: $20.00
  • Final amount they pay: $80.00

A 20% discount is attractive enough to catch attention and help close the deal, especially for customers who are on the fence. It's not so steep that you're giving away too much, but it's enough to make them feel like they're getting a special deal.

Your Earnings Breakdown:
  • Company's share: 40% = $40.00
  • Customer discount (from your commission): 20% = $20.00
  • Your commission: 40% = $40.00

You're trading $20 of your commission to make the sale happen. For many affiliates, this is the sweet spot - you're still earning $40 while making the offer more appealing to potential customers.

Example 3: The Aggressive Discount (45% Discount)

This is for when you really need to close a deal. Maybe you're competing with other affiliates, or you've got a prospect who needs serious convincing.

Customer's Perspective:
  • Original plan price: $100.00
  • Discount received: 45%
  • Amount saved: $45.00
  • Final amount they pay: $55.00

This is a substantial discount that's hard to ignore. At nearly half off, you're making an offer that's very competitive. This might be your "best and final offer" code that you pull out when nothing else is working.

Your Earnings Breakdown:
  • Company's share: 40% = $40.00
  • Customer discount (from your commission): 45% = $45.00
  • Your commission: 15% = $15.00

You're only keeping $15 from this sale, which is a significant sacrifice. But sometimes getting a customer in the door at $15 is better than losing them entirely. Plus, if you're earning recurring commissions on this customer later, the long-term value might justify the lower upfront earning.

Example 4: The Maximum Discount (60% Discount)

This is the nuclear option. You're giving away your entire commission to the customer. You make nothing upfront from this sale.

Customer's Perspective:
  • Original plan price: $100.00
  • Discount received: 60%
  • Amount saved: $60.00
  • Final amount they pay: $40.00

The customer is getting an absolutely incredible deal - 60% off is massive. This could be useful for building your customer base initially, for volume plays, or for strategic partnerships where the long-term value exceeds the upfront commission.

Your Earnings Breakdown:
  • Company's share: 40% = $40.00
  • Customer discount (your entire commission): 60% = $60.00
  • Your commission: 0% = $0.00

You're working for free on the initial sale. Why would you do this? Maybe you're building a portfolio, maybe you're banking on future recurring commissions, or maybe you've got a specific strategic reason. It's extreme, but it's an option if you need it.