Affiliate commission breakdown

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Hi all,

I'm looking to set up an affiliate program for my Shopify store. Never done this before and would love to learn from those who have more experience.

I'm aware commission breakdown and discount varies by industry, but what are some of your experiences in managing an affiliate program? And what (Shopify) plugin/app do you use?

Lastly, I'm a bit confused about the commission breakdown. Say:

Item sells for $100
Affiliate link offers 20% off
Commission paid to affiliate is 10%

Is the 10% commission based off of $100 ($10) or $80 ($8)?

Any feedback will be really helpful. Thank you!