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Product commission is a promotion in which a user shares a product link and earns commission when a friend orders through that link. Unlike multi-level distribution, product commission is one-time: only the direct referrer earns, and there is no further level. The compliance risk is lower and the rules are simple, so it suits most merchants. Private-domain commerce research puts the average share rate of product-commission campaigns at 20% to 35%, and sales brought in by commission can account for 15% to 25% of campaign-period GMV.
How it differs from distribution
Product commission is one level: only the referrer earns. Distribution can have several levels, so an upstream person also earns when someone below them orders. Product commission is lighter and easier to keep compliant, which suits merchants who do not want a full distribution system. The two can run together: ordinary users get product commission, and people who want to can apply to become distributors and earn a higher commission.
Which products to commission, and how sharing is tracked
Not every product suits commission. High margin, high repeat purchase, and easy sharing are better fits. The rate has to stay inside what the margin can bear, usually 5% to 15%. A commission zone can limit participation to some products, which makes cost easier to control. One beauty brand put 20% of its products in the commission zone, and those products contributed 35% of sales that came from sharing. As a reference, low-margin goods use 5% to 10%, mid-margin goods 10% to 15%, and high-margin goods 15% to 25%. Settlement can happen when the order is complete, after receipt, or after the after-sales window.
When a user shares a product, the system needs a personal link or poster that carries the referrer. If the person who was referred enters through the link and orders, the system binds the relationship and settles the commission automatically. The link has to stay valid and the tracking has to be accurate, or orders are lost. Systems such as Kandiantong can track this automatically, so a friend's order after a share is counted on its own.
Withdrawal, settlement, and risk control
Commission is usually settled when the order is complete, meaning after receipt or after there is no after-sales case. A withdrawal threshold can be set, for example 50 yuan, along with a method such as WeChat change or a bank card. The cycle can be T+1 or a fixed day each week. Clear settlement rules give users a reason to share.
If users are not sharing, the merchant can raise the rate, choose more attractive products, and provide share assets and suggested wording. An honor board of top sharers, or an extra reward for sharing a first order, can also encourage a first try. To limit fake orders, define a new user strictly, allow one use per device or payment account, set an order threshold, and review abnormal orders by hand. Because product commission is one level, fake orders cost more, and the risk-control burden is lighter than multi-level distribution.
Source: https://www.kandiantong.com/support/marketing/product-commission.html