Affiliate Commission Guide
Learn how affiliate commission is calculated, how payout rates work, and how to estimate earnings from traffic, clicks, and conversion.
Quick answer
Affiliate commission is income earned for sending a buyer, lead, or signup to another business. Earnings depend on more than traffic. You need clicks, conversion, tracking, approval, payout rate, and a relevant offer.
Commission formulas
Percentage commission = Sale value × Commission rate
Fixed commission = Approved actions × Payout per action
| Scenario | Calculation | Commission |
|---|---|---|
| £100 sale at 10% | £100 × 10% | £10 |
| £500 sale at 4% | £500 × 4% | £20 |
| 50 approved leads at £3 | 50 × £3 | £150 |
| 20 subscriptions at £25 | 20 × £25 | £500 |
Traffic to earnings funnel
Affiliate income usually moves through a funnel: impressions → clicks → merchant visits → conversions → approved commissions → paid commissions. A weakness at any stage reduces earnings. High traffic with low intent may earn less than smaller traffic with strong buyer intent.
Cookie windows and approval
Affiliate programmes often use cookie windows, attribution rules, refund periods, and approval checks. A sale may be tracked but later reversed if the customer refunds or the action is invalid. This is why estimated commission and paid commission can differ.
Common mistakes
- Estimating earnings from traffic alone.
- Ignoring click-through rate.
- Ignoring conversion rate after the click.
- Promoting low-fit offers.
- Not checking commission approval rules.
- Comparing programmes without considering cookie window and average order value.
Practical takeaway
Model affiliate earnings from the full funnel: traffic, CTR, conversion rate, average order value, commission rate, and approval rate. Then test with real data and focus on offer-audience fit.
FAQ
What is affiliate commission?
It is a payout earned when a referred user completes a qualifying action such as a purchase or signup.
How is affiliate commission calculated?
Commonly as sale value multiplied by commission rate, or as a fixed payout per action.
Why are clicks not enough?
Clicks only matter if they convert into tracked, approved actions.
What affects affiliate earnings most?
Traffic quality, click-through rate, conversion rate, commission rate, cookie window, and approval rules.
Can affiliate revenue be predicted exactly?
No. It can be modelled, but real results depend on audience intent and programme rules.
Related guides and calculators
Marketing note: CalcBeacon marketing guides explain metrics and decision logic. Attribution data, ad platform reporting, privacy changes, and tracking setup can affect results. Use these guides for education and combine them with your own analytics and profit data.