Verdict
A combination works best: a fixed fee that covers operational work plus a small percentage that aligns interests. Pure flat rewards standing still; pure performance rewards short-term harvesting.
Upsides and risks of a flat fee
A fixed fee is predictable, easy to budget and keeps the agency independent of revenue spikes. You know exactly what a country costs per month.
The risk: when the fee is disconnected from results, there is little financial incentive to grow the programme.
Upsides and risks of a performance fee
A percentage of revenue puts risk on the agency: no revenue, no fee. That feels fair and keeps focus on growth.
The risk: an agency paid only on revenue may lean on cashback and coupon partners that mostly claim existing sales.
Why a hybrid model wins
A base fee creates room for work that pays off later: publisher recruitment, feed optimisation and opening a new market.
A performance component keeps the agency growing with your results. DIKKE KASSA therefore uses €299 per country per month plus 3% of realised affiliate revenue.
What to check in the contract
Confirm which revenue the percentage applies to: gross, or net of returns and rejected orders. Always calculate on validated revenue.
Also record what is included per country, the notice period, and who owns accounts and data if you leave.