What is a performance fee?

A performance fee is a fee you only pay on achieved results, such as a percentage of the revenue generated through affiliate marketing.

By
DIKKE KASSA editors
European affiliate team
Topic
Glossary
Read time
2 min read

How does a performance fee work?

Instead of a fixed amount for hours of work, you pay a variable part that moves with the result. When affiliate revenue grows, the fee grows with it; when revenue lags, the fee automatically drops.

At DIKKE KASSA that is 3% of affiliate revenue, on top of a fixed €299 per country per month for management.

Why do agencies combine fixed and variable?

The fixed part covers structural work that is independent of daily results: recruiting and onboarding partners, guarding terms and reporting. That work must continue in quiet months too.

The variable part keeps the incentive sharp: whoever shares in your growth stays motivated to grow the programme.

What is the benefit for your brand?

You never pay purely for hours or promises. A large part of the cost only arises when revenue actually exists, which limits the risk at the start.

The model is also transparent: because the fee runs on measured revenue, results can always be verified against your own numbers.

How do you calculate it?

Take your expected affiliate revenue per country, multiply by 3% and add €299 per country. That is your total management cost on top of publisher commissions.

Use the calculator on our pricing page to run this for your own scenario and number of countries in under a minute.

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