HomeMonetizeAdvertise
Start now →Sign in
Core glossary term

What is a commission model?

If an AI product sends a customer to a merchant, a commission model sets the outcome that can earn revenue. The practical choice is usually CPA for a qualified action or CPS for a confirmed sale.

By AON Editorial Team · Published August 25, 2026

An offer passing validation before becoming a commission payment
Commission model
Offer · validate · earnA qualified outcome becoming commission
Definition

A commission model sets the event that earns money, the amount paid, and the conditions for payment.

CPA pays for a qualified action; CPS pays for a confirmed sale. For an AI product, the event needs to be something the merchant can report after the recommendation. In AON, Offers use CPA or CPS Goals. A hybrid deal can include more than one payable outcome, but it is not a separate pricing field in the current Offer contract.

AON context

Commission models in AON

In AON, an Offer Goal identifies the result that can enter billing, using CPA or CPS pricing. The merchant or supply partner reports that result after the customer continues from the AI product.

Read AON monetization guidance
Commercial design

How to choose a commission model

Choose the outcome

Start with a result the merchant can identify and report reliably, such as a qualified lead, booking, signup, install, or confirmed sale.

Set the pricing

Use CPA for a fixed amount tied to a qualified action and CPS for a confirmed sale. Use a hybrid arrangement only when each outcome and its terms are clear.

Make the handoff measurable

When a user continues to the merchant, preserve the information needed to match a later result to that recommendation.

Term anatomy

Common commission models: CPA, CPS, and hybrid

Choose the model around the commercial event, rather than around the click that came before it.

ConceptMeaning
CPACost per action can fit a qualified lead, registration, approved application, install, or booking. The commercial terms define what makes the action qualified.
CPSCost per sale fits a completed purchase or confirmed booking. The merchant remains authoritative for order acceptance, cancellation, refund, and sale-value information.
More than one outcomeA hybrid arrangement can cover an approved trial plus a later sale, for example. Each outcome still needs its own reporting and commercial terms.
A structured comparison of the concepts that define commission model.
Important boundaries
  • A click or conversion report is not a payout by itself: the merchant or supply partner must report the agreed outcome, which is then checked against the applicable terms.
How they relate

How commission models fit into outcome-based monetization

Outcome-based monetization means earning when a measurable business result happens, rather than being paid for a click or impression. A commission model sets the specific result and payment terms—for example, CPA for a qualified signup or CPS for a confirmed sale. See the Outcome-based monetization definition.

Applied definition

Example in practice

A software merchant can pay a fixed CPA amount for a qualified trial signup. A travel merchant can pay CPS on a confirmed booking. In either case, the merchant reports the result after the AI product's recommendation.

Common questions about commission model

How can my AI product make money from product recommendations?

Pick a result the merchant values, such as a sale, signup, lead, or booking, and make sure it can be tracked after the recommendation. With AON, commission can be evaluated after a qualifying CPA or CPS result. A click or referral alone is not guaranteed earnings.

What is the difference between CPA and CPS for an AI agent?

CPA pays a fixed amount for a defined qualified action, such as a lead, signup, install, or booking. CPS pays for a confirmed sale, commonly as a percentage of sale value. The merchant's ability to define and report the outcome should determine the choice.

Can an AI agent earn commission if the merchant handles checkout and payment?

Yes. The merchant normally keeps control of checkout and payment. The AI product preserves the tracked handoff, and the merchant or partner reports the later result for commission evaluation.

Why did I get a tracked conversion but no commission?

A tracked conversion means an event was reported, not that it was payable. It may not match the agreed outcome, or it may be duplicated, refunded, cancelled, or fail another commercial check.

Sources

  1. AON MonetizeAON documentation
  2. AgentOffer ProtocolAON documentation
  3. AON Tracking APIAON documentation
  4. AON Partner postbacksAON documentation
  5. IAB glossary of terminologyIndustry source
← Back to the full AON glossary