Affiliate marketing has long been synonymous with a pay-for-performance pricing model, rewarding publishers only when a sale attributable to a given site occurs. But today, a transformation is underway: brands are elevating affiliates from a purely bottom-of-the-funnel channel to a full-funnel hybrid – combining commission-based performance with display-like placements priced as flat-fee insertions.

A recent Yahoo Finance analysis observed affiliates have been “long‑considered second‑tier,” yet are poised to become integral to broader marketing strategies this year. This approach is becoming a strategic synergy across the purchase funnel. Brands will still pay commissions for conversions, helping drive efficiency, but they will also buy traditional “branding” style visibility on publisher sites, social media pages, videos, and even apps.

From click to context: The essence of hybrid affiliate

In the classic affiliate model, affiliate channels kicked in late in the funnel, well after the click and often right before the customer completed their purchase. But now, in the hybrid approach, marketing starts higher up the funnel.

Now, brands might negotiate flat-rate placements, such as additional site exposure, promotional newsletter slots, or in-app takeovers, with targeted affiliate publishers. Simultaneously, they offer premium commission rates to those same partners for sales they drive. This approach yields two key outcomes:

• Top-of-funnel awareness with display ad-style placements or promotional pieces
• Bottom-of-funnel conversions aided by incentives such as higher commission rates to select publishers

Why brands are embracing this shift

This hybrid strategy aligns well with evolving brand needs, such as:

• Full-funnel reach:

Flat-fee placements increase awareness and can help reinforce branding campaigns executed on other channels

• Performance efficiency:

Higher commissions paid only on completed sales ensure the effective ROAS remains efficient

• Aligned incentives:

Publishers benefit by earning both reliable revenue up-front along with commissions, while brands maintain target ROAS by paying only for the flat-fee placements within their budget, paying commissions just on actual sales generated

• Network support:

Major affiliate platforms like Awin, Rakuten, CJ, and Admitad are now enabling hybrid deals—packaging flat-fee placements with CPA-based campaigns for strategic growth

Hybrid strategies in the wild

In certain verticals, examples exist showing the growing popularity of the hybrid display and commission model in the affiliate space. For example, the beauty and wellness category is where we often see affiliate programs blending flat-fee and commission elements. Affiliates typically receive commission rates of 10-30%, while brands will also cherry-pick certain affiliates and pay them upfront fees to include banners or newsletter email features during product launches. That means specific beauty bloggers or influencers could enter into an affiliate deal that pays them both a flat placement fee and ongoing commissions on each sale, making their involvement more worthwhile and strategic during beauty brands’ campaign windows.

While Influencer Marketing might technically be considered its own form of marketing, many influencers still rely on affiliate marketing to generate income by referring products and earning commissions from sales. In these cases, influencers can leverage a combined flat fee and commission structure to bundle sponsored reviews or dedicated videos with commission rate increases as incentives.

Seasonal promotional periods are also a good time to consider hybrid publisher compensation models. Brands will often pay for flat-fee sponsorships in holiday gift guides or back-to-school roundups while also offering commissions on referred sales.

It’s worth noting that affiliate networks including CJ and Impact.com advocate and encourage the use of placements and commission hybrid models.  CJ even offers a Placement Marketplace where brands can see a directory of publishers offering promotional placements.

Marketing Technology News: MarTech Interview with Miguel Lopes, CPO @ TrafficGuard

Blended ROAS demonstrates benefits of hybrid approach

Brands allocating spend through hybrid affiliate payment structures often find their blended ROAS surpasses that of standalone PPC or display channels, and here’s why:

• Increased top-of-funnel reach:

Flat placements can amplify a brand’s overall campaign message, create more awareness, and reinforce a shopper’s intent to buy

• Increased sales volume:

Higher commissions motivate publishers to promote a brand and drive more sales.

• Efficient spend:

A brand’s total investment in a hybrid model (the nominal flat fee and the commissions on actual sales) usually delivers ROAS higher than pure-play ad channels in which a sale is not guaranteed.

Measuring what matters

Implementing a hybrid strategy requires solid, granular tracking and analysis to understand the full performance picture:

1. Tag and track impressions, clicks, and sales separately via your analytics system and reporting from your affiliate network.

2. Analyze blended ROI by comparing total investment to total revenue. Consider including both awareness and action outcomes.

3. Leverage hybrid-friendly dashboards. Some affiliate networks now offer unified reporting, showcasing both display metrics and sales performance data.

4. Pilot before scaling by running early hybrid tests with top publishers, then refine placements and commission tiers before expanding to other high-performing publishers based on test results.

Companies still relying on traditional affiliate programs anchored in pure commission payments, should consider evolving. Especially now, as we head into the back-to-school buying season, negotiate flat-fee visibility with your top affiliate publishers, overlay premium commission rates, and track blended ROAS so you can dependably consider if you should expand your hybrid pricing model to other top affiliates in your portfolio.

The affiliate future is hybrid

Affiliate marketing is going through a major technology-driven transformation with global platforms like TikTok Shop, Instagram Checkout, and YouTube Shopping allowing creators to sell products directly in-app using affiliate links and the ability for AI-powered agents to recommend products during chatbot sessions. With technology driving affiliate innovation, this is the time for companies to start thinking bigger. Those that stick with traditional affiliate models will be left behind, as companies looking to capture a larger slice of the market and revenues will adopt a modern, full-funnel, hybrid affiliate program that combines the best of commission-based performance with display-like placements priced as flat-fee insertions.

Marketing Technology News: Private: The AI Revolution: Redefining Content and the Human Element