APF

Marketing & Advertising

Affiliate Program Funnel Calculator

Move affiliate traffic into approved orders and net sales, calculate partner commission and program fees, and show merchant contribution and the break-even order level.

Raw referred orders-
Approved orders after reversals-
Approved affiliate sales-
Product cost on approved sales-
Affiliate commission-
Affiliate network fees-
Gross profit before channel costs-
Contribution after commission, fees and fixed cost-
Channel cost per approved order-
Approved orders required for channel break-even-

Decision view

Affiliate referrals to approved merchant contribution

Affiliate referrals to approved merchant contributionReferred clicks are validated into approved orders before product cost, partner commission, network fees and management cost are deducted.
Exact scenario comparisonAffiliate commission rate (%) changes while all other entered assumptions remain constant.
Affiliate commission rate (%)Raw referred ordersApproved orders after reversalsApproved affiliate salesProduct cost on approved salesAffiliate commissionAffiliate network feesGross profit before channel costsContribution after commission, fees and fixed costChannel cost per approved orderApproved orders required for channel break-even

Period-by-period detail

Affiliate commission cases

Commission rate changes while referred traffic, approved orders, product cost, network fees and program management cost remain fixed.

How to use Affiliate Program Funnel Calculator

  1. Use approved rather than raw orders.
  2. Apply commission to the contractual sales base.
  3. Include network and management fees separately.

Calculator guide

Understanding Affiliate Program Funnel Calculator

Affiliate economics must separate referred clicks, approved orders, returns, commission, product margin, network fees, and contribution retained by the merchant.

Raw orders overstate payout value Returns and invalid transactions reduce approved sales.
Commission follows contract terms The base may exclude tax, shipping, or discounts.
Margin determines affordability High revenue can still create weak merchant contribution.

Calculation method

How the calculation works

Validate affiliate-program referred traffic into approved orders, then deduct product cost, commission, network fees and management cost from approved sales. Referred clicks generate orders through conversion rate; returns reduce approved sales, while commission and network fees are deducted from gross profit.

Partner path

Follow referred traffic into approved merchant contribution

Partner nodes feed clicks and orders; returns, commission, and fees remain visible before contribution.

Referred clicks Traffic credited to partners.
Approved orders Orders remaining after reversals.
Partner payout Commission on the entered base.
Merchant contribution Gross profit after partner and network cost.

Worked situations

Practical examples

  • Coupon partners may have high conversion but low incrementality.
  • Content partners may convert more slowly through longer attribution windows.
  • Returns can reverse commission depending on program rules.

Better inputs

Useful tips

  • Review partners by type.
  • Deduplicate against paid search and influencer channels.
  • Track approved-order contribution.

Before relying on the result

Limitations and common mistakes

  • Incrementality, cookie loss, cross-device conversion, partner overlap, fraud, reversals, tiered commission, and attribution disputes are simplified.
  • Average order value and margin hide product mix.
  • The calculation is not a partner settlement statement.

Reference

Key terms

Approved order
Order remaining eligible after cancellations, returns, and validation.
Commission base
Sales value on which partner commission is calculated.
Reversal
Removal of commission credit after an order becomes ineligible.

Important note

Calculated from the entered campaign values. Validate attribution, incrementality, lag, margin, and observed source data before making decisions.

Frequently asked questions

Should commission use gross or net sales?

Use the exact contractual commission base.

How are returns treated?

Reduce approved sales and reverse commission when program rules permit.

Does the tool prove incrementality?

No; use controlled testing or partner-level analysis.