commercial

Tenancy fee

Definition

A fixed payment an advertiser makes to a publisher for guaranteed visibility, such as a homepage banner or a top slot in a deals newsletter, regardless of how many clicks or sales it generates. Tenancy fees are agreed upfront rather than paid on performance.

How does Tenancy fee work in practice?

A department store pays a coupon site a fixed 2,000 dollar tenancy fee for a featured logo placement on its homepage for one month, regardless of how many shoppers click through.

How is a tenancy fee different from standard commission-based affiliate pay?

Commission-based pay only rewards a publisher when a tracked sale or lead occurs, so the advertiser's cost scales with results. A tenancy fee is a flat cost paid regardless of performance, functioning more like traditional media buying than pay-for-performance affiliate marketing.

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