> For the complete documentation index, see [llms.txt](https://docs.wandreferrals.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandreferrals.com/programs-and-commissions/commission-types.md).

# Commission types

## What it does

A program's commission type decides **how** an affiliate's reward is calculated for each attributed order. Wand Referrals supports three types:

| Type (engine value) | UI label            | How it's calculated                             |
| ------------------- | ------------------- | ----------------------------------------------- |
| `PERCENT_OF_SALE`   | Percent of sale     | A percentage of the commission base             |
| `FLAT_PER_ORDER`    | Flat rate per order | A fixed amount per attributed order             |
| `FLAT_PER_ITEM`     | Flat rate per item  | A fixed amount × the number of qualifying items |

Percent of sale is the default; a new program's default rate is **16%**.

## When to use

* **Percent of sale** — the most common choice; rewards scale with order value.
* **Flat per order** — simple, predictable cost per conversion regardless of basket size.
* **Flat per item** — good for single-SKU or bundle promotions where you pay per unit sold.

## Set the commission type

1. In the merchant admin, open **Programs** and choose a program (or create one).
2. Under the commission settings, pick the **Commission type**.
3. For *Percent of sale*, enter the percentage (0–100). For a flat type, enter the flat amount.
4. Save.

## How the amount is computed

* **Percent of sale:** `round(commissionBase × percent ÷ 100)`. The rate is also stored in basis points (`commissionRateBps = percent × 100`).
* **Flat per order:** the flat amount (never negative).
* **Flat per item:** the flat amount × item quantity.

All money is **integer cents** and rounding happens once, at calculation time. What counts toward the commission base (discounts, shipping, tax) is configurable — see [Commission base](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/programs/commission-base/README.md).

## Per-product and per-collection rates

A program has a **Product commissions** screen where you can define product- or collection-specific rules, each with its own type and amount.

The live engine applies the most-specific matching rule to each eligible line item in this order: **variant, SKU, product, collection**. Unmatched line items use the program's default commission. When multiple equally specific rules match, a deterministic stored-key tie-break selects the winner.

> **Collection limitation.** Collection matching exists in the rule engine, but no currently supported merchant input supplies collection membership: standard Shopify `orders/paid` line items omit it, and the public Event API does not accept or preserve collection IDs. Collection rules therefore do not execute today; affected line items use another matching rule or the program default. Product, variant, and SKU rules work with supported order inputs. Always validate a representative test order before launch.

### Excluding products or collections

A program can exclude specific products or collections from the commission base so those line items never earn commission. Excluded items are removed from the base before the rate is applied — this is fully applied by the engine.

## Related

* [Commission base — discounts, shipping & tax](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/programs/commission-base/README.md)
* [Tiers & multi-level (MLM)](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/programs/tiers-and-mlm/README.md)
* [Lifetime & subscription commissions](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/programs/lifetime-and-subscription/README.md)
* [Bonuses & milestones](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/programs/bonuses-and-milestones/README.md)
* [How attribution works](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/attribution/how-attribution-works/README.md)