Project affiliate programme revenue and the commission cost of generating it.
Affiliate economics work only if the commission rate sits comfortably below the gross margin. Earnings per click is shown because that is the number affiliates optimise, and it determines whether they will promote you at all. Setting commission close to gross margin buys volume that contributes nothing, and cutting it too far means affiliates route traffic to a competitor.
Affiliate Revenue
Net contribution = revenue × gross margin − revenue × commission rate
Net contribution = revenue × gross margin − revenue × commission rate Affiliate economics work only if the commission rate sits comfortably below the gross margin. Earnings per click is shown because that is the number affiliates optimise, and it determines whether they will promote you at all.
Setting commission close to gross margin buys volume that contributes nothing, and cutting it too far means affiliates route traffic to a competitor.
This calculator takes 5 inputs: Affiliate clicks, Conversion rate, Average order value, Commission rate paid, Gross margin before commission. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.