Affiliate commission rate, attribution, and program economics.
Inputs
0 if in-house
Affiliate program economics
Net contribution / month—
Total program cost
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Effective CAC
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Net margin after affiliate
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Cost breakdown
Cost
Monthly
% of revenue
About this calculator
Affiliate programs occupy a unique position in the marketing mix: pure performance pricing, scaling without cash outlay, but with significant program management overhead and fraud risk. The economic question is whether the all-in cost (commissions + network fees + software + manager time) leaves enough margin to make the program contribute net positive.
This calculator computes program ROI: revenue × commission rate + network fee + software + manager cost = total program cost. Subtract from gross margin on affiliate revenue to get net contribution. The model exposes whether your commission rate (combined with network fees) leaves enough margin or whether the program is essentially break-even.
The strategic insight: at 15-20% commission rates plus 3-5% network fees, the all-in cost approaches 25% of revenue. For brands with 60%+ gross margin, that\'s sustainable. For 40-50% margin brands (most ecommerce), it\'s tight — net contribution after COGS, commission, fees, and software might be 15-20%. Lower-margin businesses should run leaner programs (lower commission, in-house software, no manager) or skip affiliate entirely.
Pair with the Influencer CPM calculator (alternative creator-acquisition channel), Whitelisting ROI calculator (paid amplification of affiliate creators), Customer Acquisition Cost calculator (compare affiliate CAC to other channels), and Contribution Margin calculator (validate post-affiliate economics). Most successful affiliate programs invest 3-6 months building affiliate base before judging ROI — the program compounds as repeat affiliates develop content libraries that drive recurring sales.
Frequently asked questions
What's a typical affiliate commission?
10-20% of sale value is industry standard for DTC. Apparel/beauty: 12-18%. Health/supplements: 15-25%. Electronics: 6-10%. Software: 25-40%. Higher-margin categories pay more. Reduce 1-2 points for first-time affiliates; increase for proven performers.
Network (ShareASale, Impact) vs in-house?
Network: $500-2K setup + 2-5% network fee on commissions. Easier to recruit affiliates (built-in directories), automated payouts, anti-fraud. In-house (Refersion, Goaffpro): $99-500/mo, full control, no per-transaction fee. In-house wins for established brands with affiliate momentum; networks better for new programs needing affiliate discovery.
What attribution window?
30 days last-click standard. Some programs offer 60-90 days for considered purchases. Don't exceed 90 — too long invites fraud and conflict with other channels. Don't go shorter than 14 days — undercuts affiliate motivation when buyer takes time to convert.
How big is affiliate fraud?
Real but manageable. Cookie stuffing (auto-loading cookies on referrer pages), self-referrals, and click farms make up 5-15% of unmoderated programs. Networks have anti-fraud systems; in-house programs need manual review of high-volume affiliates. Set commission caps per affiliate per period to limit exposure.
Should I run flat or tiered commission?
Tiered. Standard rate (e.g., 12%) for active affiliates. Premium tier (15-18%) for top 10% of affiliates by volume. New-affiliate intro tier (8-10%) for 90-day trial. The tiering motivates performance and protects margin on lower-tier affiliates.