Optimize your affiliate program by calculating expected payouts, accounting for refund buffers and recurring revenue models.
Gross Commission Payout:
$1000
Refund Deduction:
-$30
Estimated Net Monthly Payout:
$970
Estimated Total Life Time Value (LTV) Payout:
Net commissions are derived from gross sales volume minus a buffer for returned or fraudulent orders.
Formula: Commission = (Referrals * AOV * Rate) * (1 - Refund Rate)
Example: 100 referrals at a $50 Average Order Value with a 10% commission and 5% refund rate.
What is a typical refund rate?Most e-commerce programs see 2-5%, while digital products may see higher
How does recurring commission work?You earn a percentage of the customer's subscription fee every month they remain active
Why use a flat fee?Flat fees are common for lead generation or fixed-price services where order value doesn't vary
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