# Performance Bonus FAQ

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Use performance bonuses to add higher or additional payout rates to your contracts. This can incentivize 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](/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/performance-bonus/view-performance-bonus-payouts-and-reports.md) 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](/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/set-and-manage-template-terms-rules.md#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 bonus amount is calculated as the difference between the template term's *Default Payout* and the *Default Payout* you set for the performance bonus tier. 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](/brand/what-would-you-like-to-learn-about/platform-features/actions-and-payouts/understand-the-action-life-cycle-and-finance.md). Determining when a performance bonus is generated depends on the locking period specified on the contract. Additionally, impact.com adds a 3-day buffer to allow for potential system or processing delays.

{% 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?</summary>

Partner A signs a contract that offers a default fixed payout of $200 per online sale/CPA order, and a three-tier performance bonus that increases the payout for actions past each tier:

* `If actions reach 1-10, default payout will be $1000 per item`
* `If actions reach 11-15, default payout will be $2000 per item`
* `If actions reach 16-20, default payout will be $5000 per item`

In a given month, Partner A drives 20 actions, which means the bonus of $5000 per item applies. This fixed amount overrides the default payout and doesn't get added to it.

If Partner A had actions reversed during the pending period that dropped them below 20, they would only qualify for the $2000 payout per item.

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


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