How To Calculate What An Affiliate Partner Earns

Before you offer a commission, work out what it means for a partner and for you. Partners think in monthly and yearly earnings. You think in margin. Doing the arithmetic first avoids a rate that looks generous and does not work, or one too low to attract anyone.

The free Commission Calculator takes a monthly price, a commission percentage and a number of active subscriptions, and shows the partner's earnings per subscription each month, per month in total and per year.

The Arithmetic

Per-subscription earnings are the monthly price times the commission rate. A fictional example in plain words: at a 25% commission, a partner earns a quarter of each subscription's monthly price every month it stays active. With ten active subscriptions, the monthly total is ten times that amount, and the 12-month total is twelve times the monthly total.

Know What The Tool Assumes

The calculator assumes the same number of active subscriptions pays every month for 12 months, with no churn and no new subscriptions. Real programs change as customers cancel and new ones join, so treat the yearly figure as a scenario, not a forecast.

Test Several Rates

Run a few commission rates against the same price and subscription count. Compare the partner's monthly figure with what you keep per subscription. A rate you can afford is one you can pay every month, not only in the first month.

Decide For One-Time Or Recurring

The tool is set up for a recurring subscription. If you sell one-time products, work out the per-sale figure yourself: price times commission rate.

Use It In Your Pitch

When you recruit partners, show a simple example with numbers so they can picture the payout. Label it as an example and say how long a referred customer earns for.

Run Your Numbers

Open the Commission Calculator, enter your price, a commission rate and a subscription count, and read the three results. Then compare them with your margins before you publish your terms.