Recommended resources
The freely available resources this lesson will direct you to.
Hello! Last time, you estimated commission from impressions, clicks, purchases, and refunds. That calculation still leaves a practical question: what kind of offer are you asking someone to buy? A physical item, a course, a software tool, and a service can solve related problems, but they differ in how customers evaluate them and how affiliates may be paid.
In this lesson, you’ll compare those four categories so you can recognize which ones fit an audience you want to reach globally. You are not choosing a particular program yet; that comes later.
Start with what the customer receives
The image below groups affiliate offers into three broad types. It is a useful starting point, but for our purposes we’ll separate software from online services: a tool someone uses is different from work someone performs for them.
A physical product is a tangible item, such as a drawing tablet. A digital product is usually content delivered electronically, such as a downloadable guide or recorded course. Software is a tool the customer operates, whether installed on a device or accessed online. An online service delivers work or access for the customer, such as a portfolio review, a freelance design job, or a booked consultation.
These are useful distinctions, not rigid boxes. Software can be sold as a one-time download or a subscription. A course can be purchased once or accessed through a membership. A service might be delivered by a person, supported by software, or sold through a marketplace. When an offer crosses categories, look at what the buyer is actually getting and what action earns you a commission.
Shopify’s Affiliate Commission Guide provides broad category benchmarks. Read them as a comparison of possible payout patterns—not as a forecast of your own earnings.
Affiliate Commission Guide: Structures + Industry Benchmarks (2026) - Shopify
Read Shopify’s “Industry benchmarks” section to see how reported commission ranges differ across goods, digital products, subscriptions, and software or services.
In “Industry benchmarks,” begin at the sentence introducing the category ranges. Read the comparison through the caution immediately below the list. Notice that a subscription payment and a percentage of a first contract are different payout arrangements, even though both may be described as commissions.
Those ranges help explain why some digital offers appear more lucrative than physical goods. They do not tell you which offer will earn more from your audience. As you saw in the previous lesson, conversion and refunds matter alongside commission per sale.
Physical goods and digital products: two different buying decisions
Physical products are often straightforward to show. If someone needs a drawing tablet, you can explain its size, device compatibility, and what comes in the box. The customer can compare specifications and prices with alternatives. Your useful content answers a concrete question: Will this particular item work for me?
The complication for a global audience is fulfillment. A tablet available to one viewer might not ship to another, might cost more after delivery charges, or might have a different return arrangement. Physical-product programs commonly pay a percentage of an eligible sale, but the exact percentage can vary by item and market. A familiar product is not automatically a profitable recommendation.
Digital products, such as courses, ebooks, templates, and downloadable guides, do not require physical shipping. That can make international delivery easier, but it does not make every offer suitable everywhere. Language, payment access, licensing, and the usefulness of the material still matter.
For a course, the buyer cannot inspect the finished learning experience the way they can inspect a tablet’s specifications. Your recommendation needs to clarify what the course teaches, who it is for, whether a sample is available, and what its limitations are. A higher percentage commission is no reason to recommend a course whose content you cannot evaluate credibly.
Consider two hypothetical sales: an USD tablet paying would yield USD; a USD course paying would yield USD. The course pays more per eligible sale in this example. It does not necessarily earn more per click: you would still need to know how often the right buyers purchase it and whether commissions are reversed on refunds.
Software and online services: pay attention to the qualifying action
Software solves a continuing task. For example, an invoicing tool might help a freelancer create bills and track payments. To recommend it well, you would explain which problem it handles, what its free and paid versions offer, whether it works with the buyer’s devices, and what it costs to keep using. A demonstration or a comparison with an alternative can be more helpful than a list of features.
Software offers have varied payment arrangements. One program might pay for a first paid subscription; another might pay on eligible renewals; another might pay a fixed amount after a qualifying signup. “Recurring commission” is a program rule, not a property of all software. Even when a program offers it, payment depends on conditions such as the customer remaining subscribed and the program continuing to credit renewals. Do not treat future months as guaranteed income.
An online service is usually judged by the provider’s ability to deliver an outcome. Someone considering a portfolio review, for instance, needs to know what feedback they will receive, who delivers it, how long it takes, and whether appointments are available at workable times. Service offers can pay for a completed booking or purchase; some pay for a qualified lead, such as a form submission that meets stated criteria. A casual signup may not qualify.
Shopify’s commission-model table helps separate the offer category from the event that triggers payment.
Affiliate Commission Guide: Structures + Industry Benchmarks (2026) - Shopify
Read Shopify’s “Common affiliate commission models” section to connect product types with possible payout rules.
In “Common affiliate commission models,” start with the introductory sentence above the table and read the model table through its final “Recurring commissions” row. Focus on pay-per-sale, pay-per-lead, pay-per-install, and recurring commissions. The table describes possible models, not a promise that any particular offer uses them.
This distinction prevents a common mistake: calling a free software trial a “sale” when the program only pays after the user becomes a paying customer—or assuming a service inquiry earns commission when only completed bookings qualify. Always check the specific program’s definition of a valid referral.
Compare offers around one audience problem
Imagine you publish helpful content for people starting freelance design work. You might encounter four relevant offers:
| Category | Possible offer | What your content would need to clarify |
|---|---|---|
| Physical product | Drawing tablet | Compatibility, size, delivery, and returns |
| Digital product | Layout-design course | Skill level, lesson content, and language |
| Software | Design or invoicing tool | Features, device access, and ongoing cost |
| Online service | Portfolio-feedback session | Deliverables, provider, booking, and timing |
These offers are not interchangeable. Someone asking “Which tablet works with my laptop?” has a different immediate need from someone asking “Why am I not getting clients?” A tablet link in the second conversation would be poorly matched, even if it paid a good commission. The more useful recommendation begins with the buyer’s problem, then explains which category might solve it.
For global promotion, online availability is not the same as worldwide purchasing access. Check whether the physical item ships to the viewer’s market; whether the course is offered in a usable language; whether the software supports the buyer’s device and payment method; and whether the service accepts customers in their country or time zone. If a viewer cannot use or buy the offer, its advertised commission rate is irrelevant to that viewer.
A compact way to compare categories is to ask four questions:
- What does the customer receive? An item, information, a tool, or work performed?
- What evidence helps them decide? Specifications, a course preview, a tool demonstration, or a service description?
- What must happen for a commission? A purchase, paid renewal, qualified lead, or another specified action?
- Can this audience actually buy and use it? Consider availability, language, payment, and delivery.
Only then is it useful to compare estimated earnings per click. The category suggests questions to investigate; it does not supply the conversion rate.
Key takeaways
Physical goods give buyers something tangible to compare but bring shipping and market-availability constraints. Digital products avoid physical delivery but require a credible assessment of their content and suitability. Software often needs a clear demonstration of ongoing value; online services need clarity about who delivers what, when, and under which conditions.
Any of these categories can be paid under different affiliate rules. A high percentage or a recurring-payment label is not, by itself, a reason to promote an offer. Next, you’ll learn to recognize unrealistic income promises, deceptive tactics, and scams before they shape your choices.