# Performance Bonus FAQ

<a href="https://pxa.impact.com/student/activity/1117596?sid=0c0e3e5c-54c9-4435-9bee-ebcdccb7f292&#x26;sid_i=0?utm_source=app.impact.com&#x26;utm_medium=owned-platform&#x26;utm_content=con-350&#x26;utm_campaign=help-center" class="button primary">Take the PXA course</a>

Use a performance bonus to add higher payout rates (or extra payouts) to your contracts that can incentivize your partners to drive more revenue or actions for your program.

* A performance bonus is specified in your template terms and is linked to an event type.
* You can review your performance bonus payouts at any time in the Finance section of the platform.

<details>

<summary>What happens when I add a performance bonus to an active contract?</summary>

If you add a performance bonus to active template terms, all partners signed to the contract will be notified and prompted to accept your new terms. After the [change notification period](https://help.impact.com/brand/what-would-you-like-to-learn-about/platform-features/template-terms/set-and-manage-template-terms-rules#template-terms-rules-0-1), any previously signed partners will be added to the contract automatically.

</details>

<details>

<summary>How do performance bonuses affect payouts?</summary>

When creating tiers for your performance bonus, the difference between the template term's *Default Payout* and the performance bonus's *Default Payout* you set for a tier will be the performance bonus a partner receives. The template term's *Default Payout* **does not change** when a performance bonus tier is reached—the total payout changes.

</details>

<details>

<summary>How are performance bonuses calculated?</summary>

impact.com calculates the final performance bonus on a monthly cadence for [locked actions](https://help.impact.com/brand/what-would-you-like-to-learn-about/platform-features/actions-and-payouts/understand-the-action-life-cycle-and-finance). Determining when a performance bonus is generated depends on the locking period specified on the contract. Additionally, impact.com pads 3 days to allow for any delays in the system, processing, etc.

{% hint style="warning" %}
Default payout vs. total payout

Remember that the performance bonus rule **does not change the default payout**—the total payout changes.
{% endhint %}

</details>

<details>

<summary>Can you give an example, please?</summary>

Certainly! Partner A signs a contract that offers a default payout of 4% per online sale/CPA order, and a two-tier performance bonus that increases the payout for actions past each tier:

* `If revenue reaches $200, default payout will be 6% per order`
* `If revenue reaches $400, default payout will be 8% per order`

In a given month, Partner A drives $500 worth of revenue, which means they qualify for both performance bonus tiers. All of the actions that drove up the $199 revenue amount are paid at 4%, actions between $200 and $399 qualify for a performance bonus of 2% payout (so 6% total payout), and actions past the $400 revenue amount qualify for a performance bonus of 4% payout (so 8% in total payout).

If Partner A had actions reversed during the pending period that dropped them under $400 of revenue, they would only qualify for the additional 2% on orders.

</details>

#### Additional resources

To learn more about adding a performance bonus to a contract or viewing payouts and reports, view the following articles:

* [Add a Performance Bonus to a Contract](https://help.impact.com/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/performance-bonus/add-a-performance-bonus-to-a-contract)
* [View Performance Bonus Payouts & Reports](https://help.impact.com/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/performance-bonus/view-performance-bonus-payouts-and-reports)