Affiliate marketing has become an integral part of online course promotion. It allows you to expand your reach through the networks of others, reward influencers and partners, and scale your business with relatively low risk. For co-produced courses—those created by two or more collaborators—affiliate marketing is even more powerful, since you can combine networks, skills, and audiences for greater exposure.
However, with more hands in the mix, things can also get complicated—especially when it comes to dividing affiliate fees. Questions arise: How should affiliate commissions be split between co-producers? Who manages payouts? What happens when an affiliate is personally connected to one co-producer but not the other?
If these questions aren’t addressed early, they can lead to miscommunication, resentment, and financial mismanagement. That’s why it’s critical to establish a clear, fair, and scalable affiliate fee structure from the start.
In this comprehensive article, we’ll cover:
- What affiliate fees are and how they work in course sales
- Why they’re essential for co-produced courses
- Common affiliate structures
- How to split affiliate income fairly
- Legal and tax considerations
- Tools for tracking and managing affiliate fees
- Real-world examples
- A best-practice checklist for success
What Are Affiliate Fees?
Affiliate fees are the commissions paid to individuals or businesses who promote your course and generate sales through their unique referral links. It’s a performance-based marketing model—affiliates only get paid when they drive conversions.
In online education, affiliate fees are typically a percentage of the course price, commonly ranging from 20% to 50%, depending on the niche, pricing, and perceived value of the course.
In a co-production setting, affiliate fees must be integrated into your financial planning alongside your revenue split agreement between course creators.
Why Affiliate Marketing Is Especially Valuable in Co-Productions
When multiple creators collaborate on a course, affiliate marketing becomes a natural extension of your collective audience-building power.
Key benefits:
- Expanded reach – Leverage each co-producer’s existing community.
- Faster growth – Influencers and micro-affiliates can promote the course on your behalf.
- Performance-based – No upfront ad costs; you only pay for results.
- Credibility – Third-party endorsements from affiliates can boost trust in your course.
However, without a system in place, you risk issues like double payouts, unclear commissions, or favoritism—which is why structure is essential.
Common Affiliate Structures in Online Courses
Before you determine how to split affiliate fees, it’s important to understand the typical ways affiliate programs are structured. Here are the most common:
1. Flat Percentage Commission
All affiliates earn a fixed percentage (e.g., 40%) on every sale they refer. Simple to implement and understand.
2. Tiered Commission
Affiliates who generate more sales move to higher commission brackets. For example:
- 20% for 1–5 sales
- 30% for 6–15 sales
- 40% for 16+ sales
3. Private/Custom Commissions
Top affiliates may receive a special commission (e.g., 50%) as an incentive.
4. Recurring Commission
Some course models include subscriptions or memberships. Affiliates receive a recurring fee as long as the customer stays subscribed.
All of these models can work in co-productions, but the key question is: How do you divide the affiliate-related revenue and costs between co-producers?
How to Split Affiliate Fees Fairly Between Co-Producers
Once you’ve agreed on an affiliate model, you need to decide how those payouts affect your revenue-sharing agreement. There are three main approaches:
Approach 1: Shared Gross, Then Deduct Affiliate Fees
In this model:
- The affiliate commission is subtracted from the gross revenue first.
- The remaining revenue is then split between the co-producers based on their agreed percentage.
Example:
- Course price: $200
- Affiliate commission: 40% ($80)
- Net revenue: $120
- Co-producer split: 50/50
- Each co-producer receives $60
Pros:
- Fairly distributes affiliate-related costs.
- Simple to calculate.
Cons:
- Reduces overall payout per sale, especially at high commission rates.
Approach 2: Creator-Specific Attribution
This model attributes affiliate sales based on who recruited the affiliate.
Example:
- If Co-producer A recruited the affiliate, they may get a larger share of that sale.
- For example: 70% of net revenue to Co-producer A, 30% to Co-producer B.
Pros:
- Incentivizes both creators to recruit affiliates.
- Encourages personal networking and promotion.
Cons:
- Requires accurate tracking.
- Can feel unfair if one co-producer recruits significantly more affiliates.
Approach 3: Affiliate Revenue Pooled Separately
Some teams pool all affiliate-driven sales into a separate account and pay affiliate commissions from that fund. The remaining revenue is then split equally or based on a unique formula.
This method is more common in complex partnerships or multi-course ecosystems.
Best Practice Tip: No matter the model, document everything in writing. Use a partnership agreement that outlines:
- How affiliate sales are tracked
- Commission percentages
- Revenue split methods
- Payout schedules
- Dispute resolution procedures
Legal and Tax Considerations
Affiliate revenue may create added complexity in terms of taxes and legal responsibilities. Here’s what to watch for:
1. Clear Terms for Affiliates
Have a terms and conditions page that outlines:
- Payment timelines
- Minimum payout thresholds
- Refund handling
- Tax responsibilities (e.g., W-9 or 1099 for U.S. affiliates)
2. Transparency Between Co-Producers
Ensure both parties have access to affiliate tracking and payment logs. Use a shared dashboard or reporting system.
3. VAT and Sales Tax
If you sell globally, taxes may apply differently. Consider platforms like ThriveCart or Paddle that handle tax calculations automatically.
4. Withholding and Reporting
Decide who is responsible for issuing tax forms to affiliates (especially if one partner operates the payment gateway).
Tools for Managing Affiliate Programs in Co-Productions
Several affiliate management platforms support co-produced course setups. Here are some top options:
1. Teachable’s Affiliate System
- Integrated affiliate tracking
- Commission customization
- Simple for small teams
2. ThriveCart
- Advanced tracking and split payments
- Multi-user permissions
- Sales tax management
3. Kajabi
- Affiliate dashboard with visibility for both creators
- Option to manually adjust commissions
4. Rewardful
- Works well with Stripe and other payment gateways
- Clean, customizable dashboard
5. FirstPromoter
- Excellent reporting tools
- Option to assign affiliates to specific co-producers
Real-World Example
Case Study:
Two course creators—Jane (a copywriting expert) and Alex (a video producer)—launch a $300 course. They agree on a 50/50 revenue split and offer 40% affiliate commissions.
They choose Approach 1: deduct affiliate fees first.
- Affiliate refers a sale:
- Course price: $300
- Affiliate gets 40%: $120
- Net: $180
- Jane gets $90, Alex gets $90
They also allow custom affiliate tiers. For top partners, commissions rise to 50%, reducing the net payout. But the increase in volume makes up for the margin loss.
They manage everything in ThriveCart and meet monthly to review performance.
Result: In 6 months, they generated $42,000 in affiliate sales and added 1,800 new leads to their email lists—shared equally.
Communication and Trust: The Cornerstones of Smooth Payouts
Even with the best software, human relationships matter most. To maintain fairness and prevent tension:
- Schedule monthly finance reviews
- Maintain a shared ledger or dashboard
- Be transparent about affiliate recruitment and engagement
- Address conflicts early—before resentment grows
Final Checklist for Co-Producers Managing Affiliate Fees
- Agree on affiliate commission rates and tiers
- Decide how affiliate sales affect your revenue split
- Choose and set up an affiliate tracking platform
- Define payout schedules and minimum thresholds
- Draft affiliate terms and co-producer agreements
- Share access to sales data and affiliate reports
- Review and revise your setup quarterly
Final Thoughts
Affiliate marketing can transform your co-produced course into a scalable, community-driven product. But to protect your partnership—and your profits—you must treat affiliate fees as part of your strategic business model, not an afterthought.
With clear communication, fair structures, and solid tools, affiliate marketing becomes a win-win: for you, your partner, and the affiliates who believe in your course.