> For the complete documentation index, see [llms.txt](https://help.impact.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.impact.com/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/payout-modifications-explained.md).

# Payout Modifications Explained

impact.com gives you a set of tools for fine-tuning how you want to compensate partners beyond their default payout rate. These tools let you protect payouts against low-quality traffic, incentivize the right partners, and cap spend to meet your budget. Read on to learn about each modification type and how impact.com applies it.

## The role of payout modifications

Every contract has a default payout, and you've either set this to be a fixed amount or percentage per event, like a sale or click. However, you can add rules on top of this base payout for more control, e.g., to do the following:

* Block payouts you don't want
* Set higher payouts for actions you value more
* Cap how much a partner can be paid out within a timeframe
* Define tiers of rules that apply at different performance thresholds

## Supported payout modification types

<table data-header-hidden="false" data-header-sticky><thead><tr><th>Modification type</th><th>What it does to the payout</th><th>When it is applied</th></tr></thead><tbody><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/add-payout-restrictions-to-template-terms.md">Payout Restriction</a></td><td><strong>Blocks it.</strong> Nullifies the payout entirely when an action matches a condition (e.g., traffic from a restricted region).</td><td>At conversion, per action.</td></tr><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/set-payout-rules-using-payout-groups.md">Payout Group</a></td><td><strong>Sets it.</strong> Replaces the base payout with a new rate when an action matches a condition (e.g., <code>Customer Status is New</code>). Only one payout group applies per action, and it sets the base before any Payout Adjustment runs.</td><td>At conversion, per action.</td></tr><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/tracking/set-up-tracking/configure-customer-status-mapping.md#create-a-payout-adjustment">Payout Adjustment</a></td><td><strong>Modifies it.</strong> Nudges the base payout up or down by an amount or percentage. The base it modifies is the matching Payout Group's rate, or the Default Payout when no group applies.</td><td>At conversion, per action.</td></tr><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/set-payout-limits.md">Limit</a></td><td><strong>Caps it.</strong> Stops paying once a payout or action ceiling is reached, for the chosen period. Actions beyond the cap are marked <em>Outside of Terms</em> and aren't payable unless manually approved.</td><td>At conversion, as the limit accrues.</td></tr><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/performance-bonus/add-a-performance-bonus-to-a-contract.md">Performance Bonus</a></td><td><strong>Replaces it at tier.</strong> When a partner's monthly performance hits a certain tier, that tier's payout rate overrides the <em>Default Payout</em>, and the extra amount is paid as a bonus. Unlike a Payout Group, this override is applied later, on a monthly cadence, rather than at conversion.</td><td>Monthly, once actions lock (plus a 3-day buffer).</td></tr><tr><td><a href="/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/participation-bonuses-explained.md">Participation Bonus</a></td><td><strong>Redistributes it.</strong> Reduces the winning partner's payout to free up budget for contributing partners in the path. It's a workflow built on a Payout Adjustment (<code>Path Media Count > 1</code>), not a standalone setting.</td><td><p>Winner's reduction is applied at conversion.</p><p>Contributors must be paid manually via a PFT (<a href="/brand/what-would-you-like-to-learn-about/platform-features/cross-channel-performance-insights/optimize-reports/participation-bonus-report-and-bulk-partner-funds-transfers.md">Partner Funds Transfer</a>).</p></td></tr></tbody></table>

{% hint style="success" %}
**Note:** Payout Restrictions, Payout Groups, and Payout Adjustments all make use of rules in a specific format. See [How Payout Rules Work](/brand/what-would-you-like-to-learn-about/platform-features/contracts-and-template-terms/template-terms/payout-adjustments/how-payout-rules-work.md) for the full list of rules and for help building and combining them.
{% endhint %}

## Scenario in practice

<mark style="color:red;">**On January 1, 2026, a new customer in the US completes a $200 order after clicking links from two of your partners along the way.**</mark>

Your template term is configured with:

* *Default Payout:* You want to pay 8% per order
* *Payout Group:* If `Customer Status is New`, you want to increase the payout to 12% per order
* *Payout Adjustment:* If multiple partners influence the sale (`Path Media Count > 1`), you want to decrease the payout by 50% to credit more partners
* *Payout Restriction:* If `Referral Derived Country/Region is not US`, you don't want to pay out at all
* *Limit:* You want to cap each partner's total earnings at $5,000 USD per month to keep your commission spend predictable

### How multiple payout modifications fit together

Here's how impact.com applies your payout rules to the same scenario:

1. **Payout Restrictions**: If the action matches any restriction, no payout is generated and evaluation stops here.
   * [x] Customer's country was US → action passes.
2. **Payout Group match**: If the action matches a payout group's rules, that group's payout replaces the default payout as the new base payout.
   * [x] Customer was new → base payout changes from 8% to 12% of $200 = $24.
3. **Payout Adjustments**: The adjustment then modifies the base payout by the adjustment amount or percentage.
   * [x] A second partner was involved in the customer journey → decrease payout by 50% → payout becomes $12.
4. **Limits**: If the resulting payout exceeds the monthly limit, the action isn't payable unless manually approved.
   * [x] Assume a payout of $12 on January 1st falls under the partner's $5,000 monthly cap.
5. **Performance Bonus**: If the partner's locked-action total for the month hits a specified performance tier, that tier's payout rate replaces the *Default Payout*.
   * [x] You have none set up, so nothing changes.
6. **Participation Bonus**: Any additional partners in the customer journey can still receive their reward through a manual PFT.
   * [x] The winning partner's reduction happened in step 3 above. The other partner in the path will receive their share after you run the [Participation Bonus report](/brand/what-would-you-like-to-learn-about/platform-features/cross-channel-performance-insights/optimize-reports/participation-bonus-report.md) and issue a [Bulk Partner Funds Transfer](/brand/what-would-you-like-to-learn-about/platform-features/finance/partner-funds-transfer/bulk-upload-partner-funds-transfers.md).

<div data-with-frame="true"><figure><img src="https://4048883401-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwMLlMoFBtKJa8ptd3zaw%2Fuploads%2FnXsMdCcTCnhQeHEsjVy6%2FScreenshot%202026-09-02%20at%203.46.12%E2%80%AFPM.png?alt=media&amp;token=0ade87aa-721b-495b-8e8a-50a9a1e0637f" alt="" width="563"><figcaption></figcaption></figure></div>


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