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How are cash rewards or commissions calculated on referred purchases?
How are cash rewards or commissions calculated on referred purchases?
Adam avatar
Written by Adam
Updated over a month ago

ReferralCandy calculates cash rewards and commissions based on the subtotal amount of referred purchases. Commission fees are calculated depending on your ReferralCandy plan and the number of commission-chargeable referrals made through your store.


Computation based on the subtotal amount

ReferralCandy extracts the subtotal amount from the referral invoices forwarded to the system, and uses this figure as the basis for calculating commissions and cash rewards. The subtotal is the amount after any discount is applied, but before taxes and shipping fees.

  • The subtotal amount must be explicitly stated on the referral invoice emails with email integration, via your purchases and referral tracking code with JavaScript integration or via API call with API integration

  • If the subtotal amount is not explicitly stated, the next closest amount to the subtotal amount is used to calculate cash rewards or commissions.

  • If you're using Shopify, BigCommerce, or WooCommerce, the system extracts the subtotal amount directly from your platform

Example: The subtotal amount is stated in the invoice

Information in invoice:

  • Price of product: $100

  • Discount: 10%

  • Subtotal: $90

  • S&H: $10.00

  • Taxes: $5.00

  • Total: $105

In this example, ReferralCandy calculates the cash reward or commission based on the stated subtotal amount (i.e. $90).

Example: The subtotal amount is not stated in the invoice

Information in invoice:

  • Price of product: $100

  • Discount: 10%

  • S&H: $10.00

  • Taxes: $5.00

  • Total: $105

In this example, ReferralCandy extracts the total amount and calculates the cash reward or commission based on the total amount (i.e. $105).


Commission fee calculation

The commission is charged depending on your ReferralCandy plan and the commission-chargeable purchases from your referral sales. Commission is charged only on purchases made by new customers referred to your store, which are referred to as referral sales.

The commission only applies to the first three (3) referred purchases a referred friend makes. This is regardless of the number of rewardable referred purchases and the minimum purchase amount required for the Advocate to be eligible for a reward.

The table below shows a sample of a store's referral sales for a month.

If you're on the Premium Plan, ReferralCandy will charge a commission at a rate of 3.5% on your store’s referral sales for the month.

  • Example: You signed up for the Premium plan billed monthly. Your store's total referral sales for the month is $2,000 with $1,100 as commission-chargeable.

    • We would charge you $38.50 in commission plus the base fee of $59.

    • Your invoice for that month would be $97.50.

If you're on the Plus Plan, ReferralCandy will charge a commission at a rate of 1.5% on your store’s referral sales for the month.

  • Example: You signed up for the monthly Plus plan billed monthly. Your store’s total referral sales for the month is $2,000 with $1,100 as commission-chargeable.

    • We would charge you $16.50 in commission plus the base fee of $299.

    • Your invoice for that month would be $315.50.

Want to see an estimate of your ROI and charges? See our Plans & Pricing page here. You can also use our ROI calculator to see your estimated billing.


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