Question 1

How do you calculate affiliate commission costs?

Accepted Answer

Total Commission = Affiliate Revenue × Commission Rate. If affiliates drive $25,000 in monthly revenue at 15% commission, you pay $3,750 in commissions. Add your platform fee to get total program cost. Your effective CPA is the commission per order: $60 AOV × 15% = $9.00 per acquisition.

Question 2

What is a good affiliate commission rate for ecommerce?

Accepted Answer

Typical ecommerce affiliate commissions: 5-15% for physical products, 15-30% for digital products, 20-50% for SaaS/subscriptions. Your max commission rate equals your gross margin — anything higher means you lose money. Most Shopify stores offer 10-20%. Higher commissions attract better affiliates but reduce your margin.

Question 3

How do affiliate commissions compare to paid ads CPA?

Accepted Answer

Affiliate commissions are performance-based — you only pay when a sale happens, unlike ads where you pay per click regardless of conversion. A 15% commission on $60 AOV is $9 CPA. Compare this to your paid ads CPA to see which channel is more cost-effective. Affiliates often have lower CPA but less control over volume and messaging.

Question 4

Should I factor in customer lifetime value for affiliate ROI?

Accepted Answer

Yes — affiliates typically bring new customers who may reorder. If the average customer places 2.5 lifetime orders, your LTV revenue is 2.5× the first order. Since you usually only pay commission on the first sale, the lifetime ROAS is much higher than first-order ROAS. This calculator shows both so you can justify higher commission rates.

Question 5

What affiliate platform fees should I expect?

Accepted Answer

Popular Shopify affiliate platforms: GoAffPro (free-$29/mo), Refersion ($99-$249/mo), ShareASale ($625 setup + $35/mo + 20% of commissions), Impact (custom pricing), UpPromote ($29.99-$199.99/mo). Some also charge a percentage on top of commissions. Factor platform fees into your total program cost.

Free Affiliate Commission Calculator

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