Question 1

What is a good affiliate commission rate?

Accepted Answer

Commission rates by industry: Software/SaaS: 20-40% (often recurring). Physical products: 5-20%. Digital products/courses: 30-60%. Financial services: $50-$150 flat. Amazon Associates: 1-4.5%. High commission rates (40%+) attract affiliates but must still maintain positive LTV:CAC. Calculate: if customer LTV is $300 and CAC must be under $100, max commission = $100 (33%).

Question 2

What is EPC (Earnings Per Click) and why does it matter?

Accepted Answer

EPC = Total Affiliate Commissions / Total Clicks. It's the universal affiliate quality metric. High EPC (above $1.00) attracts quality affiliates willing to pay for traffic. EPC below $0.10 means affiliates can't profitably run paid ads to your offer. Calculate your EPC from pilot campaigns to use in affiliate recruitment: 'Our program pays $1.50 EPC on average.'

Question 3

How do I structure a successful affiliate program?

Accepted Answer

Key program elements: (1) Commission structure — flat fee for simple products, % revenue-share for subscriptions; (2) Cookie window — 30-90 days shows affiliates you're fair; (3) Marketing materials — banners, email swipes, review templates; (4) Payout timing — monthly with 30-45 day hold for refund protection; (5) Affiliate tiers — base 20%, top performers 30-40%; (6) Dedicated affiliate manager for partners above $1K/month.

Question 4

When should I offer recurring vs one-time commissions?

Accepted Answer

Recurring commissions (paid every month the referral stays subscribed) are the gold standard for SaaS — they align affiliate incentives with retention and attract quality traffic. One-time commissions are simpler to manage and fine for single-purchase products. Many successful SaaS programs offer: one-time 100% of first month's revenue (attracts affiliates quickly) OR 20-30% monthly recurring (better lifetime value to affiliates).

Affiliate Commission Calculator — Earnings & Payout Rate Optimizer

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