Affiliate Metrics & KPIs

Clicks

The number of times users click on affiliate links. While a basic metric, click volume indicates affiliate reach and engagement. Track unique clicks versus total clicks to understand repeat visitor behavior.

Conversion Rate

Formula: (Conversions / Clicks) × 100

The percentage of affiliate clicks that result in desired actions (sales, leads, sign-ups). Industry averages range from 0.5% to 5% depending on product type and affiliate quality. Low conversion rates may indicate traffic quality issues or poor landing page alignment.

Average Order Value (AOV)

Formula: Total Revenue / Number of Orders

The average purchase amount from affiliate-driven transactions. Compare affiliate AOV to other channels to understand customer value differences. Some affiliates may drive higher volumes but lower values, or vice versa.

Revenue

Total sales generated through affiliate referrals. Track both gross revenue and net revenue (after returns and cancellations). Segment by affiliate, affiliate type, and time period to identify trends and opportunities.

Earnings Per Click (EPC)

Formula: Total Commissions Earned / Total Clicks

A key metric for affiliates showing average earnings per click. Higher EPC indicates better-converting traffic or higher commission rates. Affiliates use EPC to compare program attractiveness across merchants.

Commission Cost

Total commissions paid to affiliates. Track as both absolute amount and percentage of affiliate-driven revenue. Typical commission rates range from 5% to 30% depending on industry and product margins.

Return on Ad Spend (ROAS)

Formula: Revenue from Affiliates / Total Affiliate Costs

Total affiliate costs include commissions, network fees, management overhead, and bonuses. A ROAS of 3:1 means you generate $3 in revenue for every $1 spent on the affiliate program. Benchmark varies by industry but typically ranges from 3:1 to 10:1.

Customer Acquisition Cost (CAC)

Formula: Total Affiliate Costs / Number of New Customers

The cost to acquire a new customer through affiliates. Compare to customer lifetime value (LTV) to ensure sustainable economics. CAC should be significantly lower than LTV, with a 3:1 LTV:CAC ratio considered healthy.

Incremental Revenue

Revenue that wouldn't have occurred without the affiliate channel. Challenging to measure precisely but critical for understanding true program value. Use holdout tests, brand bidding analysis, and coupon code tracking to estimate incrementality.

Return Rate

Percentage of affiliate-driven sales that are returned or refunded. High return rates may indicate poor traffic quality, misleading promotions, or audience mismatch. Track by affiliate to identify problematic partners.

Customer Lifetime Value (LTV)

Total revenue generated from customers acquired through affiliates over their entire relationship with your brand. Some affiliates may drive one-time buyers while others attract loyal, high-value customers. Adjust commission structures to reward quality over quantity.

Time to Conversion

Average time between affiliate click and conversion. Shorter times suggest high purchase intent, while longer periods indicate research-oriented traffic. Use this metric to optimise cookie windows and understand affiliate roles in the customer journey.

Repeat Purchase Rate

Percentage of affiliate-acquired customers who make additional purchases. Higher rates indicate better customer quality and audience fit. Consider offering bonuses to affiliates who drive customers with high repeat rates.

Active Affiliates

Number of affiliates generating at least one click or conversion in a given period. Low activation rates suggest program communication issues, uncompetitive commissions, or insufficient promotional resources.

Top Affiliate Concentration

Percentage of revenue generated by top 10 or top 20 affiliates. High concentration creates risk if key partners leave or change strategy. Aim for balanced portfolio with mix of large and emerging affiliates.

New Affiliate Recruitment Rate

Number of new affiliates joining per month. Healthy programs continuously attract new partners to offset churn and expand reach. Track application-to-approval ratio to gauge program attractiveness.

Affiliate Churn Rate

Percentage of affiliates who stop promoting your program. High churn may indicate payment issues, communication gaps, or better opportunities elsewhere. Conduct exit surveys to understand reasons.

Industry Benchmarks

Affiliate marketing performance varies significantly by industry. E-commerce typically sees 1-3% conversion rates and 5-15% commission rates. SaaS and digital products often have higher commissions (20-30%) but longer sales cycles. Financial services may pay $50-$200 per lead.

Setting Realistic Goals

Establish baseline metrics from your first 3-6 months, then set incremental improvement targets. Focus on metrics you can influence: affiliate recruitment, commission optimisation, and traffic quality improvement. Avoid unrealistic expectations based on outlier success stories.

Segmentation Analysis

Break down metrics by affiliate type (content, coupon, loyalty, influencer), traffic source (organic, paid, social), and product category. This reveals which combinations drive best results and where to focus recruitment and optimisation efforts.