Key takeaways
- Earnings = Clicks × Conversion rate × Avg order value × Commission rate.
- For creator audiences, a 1–5% conversion rate is normal; 2–3% is common.
- Commission rates vary widely — 1–4% physical goods, up to 30–50% on software.
- Always disclose affiliate links clearly — it's an FTC requirement, not optional.
The four levers
Affiliate income is just four numbers multiplied together. Move any one of them and your earnings move with it:
- Clicks — how many people tap your link (a function of reach and how compelling the recommendation is).
- Conversion rate — the share of clickers who buy.
- Average order value (AOV) — the typical basket size on that purchase.
- Commission rate — the percentage the merchant pays you.
A worked example
Say a creator sends 5,000 clicks a month to a product, 3% of them buy, the average order is $60, and the program pays an 8% commission.
Now notice the leverage: bumping conversion from 3% to 4% — by recommending a more relevant product to a warmer audience — lifts this to $960/month, a 33% gain with the same traffic. Try your own four numbers in the affiliate income calculator to see which lever moves your total most.
Typical commission rates by category
Commission rates are set by the merchant and vary enormously by what you're promoting:
| Category | Typical commission | Note |
|---|---|---|
| General retail / marketplaces | 1–4% | Low rate, high AOV and trust |
| Fashion & beauty | 5–15% | Frequent repeat buyers |
| Online courses | 20–40% | High margin digital |
| Software / SaaS | 20–50% (often recurring) | Best long-term value |
Recurring software commissions are the quiet winner: one referral that stays subscribed pays you every month. That stability pairs well with another recurring stream — sponsored email — which you can model in the newsletter revenue calculator.
Disclosure isn't optional
In the US, the FTC requires a clear, conspicuous disclosure any time you earn from a link. Put plain language — "affiliate link" or "I may earn a commission" — right next to the link, not buried in a description or a separate policy page. It protects you legally and, done honestly, builds the trust that actually drives conversions.
Frequently asked questions
How is affiliate income calculated?
Earnings = clicks × conversion rate × average order value × commission rate. For example, 5,000 clicks at 3% conversion on a $60 order at 8% commission earns $720 a month.
What is a good affiliate conversion rate?
For creator audiences, 1–5% is normal, with 2–3% common for warm, trusting audiences. It depends on product relevance, how warm the recommendation is, and the landing page.
Do I have to disclose affiliate links?
Yes. The US FTC requires clear, conspicuous disclosure whenever you earn a commission. Use plain language like "affiliate link" near the link itself, not buried elsewhere.
Recommended tools
Affiliate networks and link tools creators use. These are affiliate links — we may earn a commission at no cost to you.
Sources: FTC Endorsement Guides (ftc.gov); publicly published affiliate-program commission schedules. Conversion and commission figures are estimates and vary by program and audience.
Reviewed 2026-06-14