The chain that determines affiliate income
Affiliate earnings depend on four numbers multiplied together: how many people visit, how many click your link, how many of those buy, and what you earn per sale. Because they multiply, a weakness anywhere collapses the result — and equally, a modest improvement at each stage compounds.
Doubling both click-through and conversion rate quadruples earnings without a single extra visitor. That is usually a far more achievable project than doubling traffic.
Realistic benchmarks
Click-through rates on affiliate links vary enormously with context. A link buried in a paragraph of general content might see under one percent. A link in a genuine product review, placed where a reader has already decided they are interested, can see five to fifteen percent.
Conversion rates on the merchant's side typically sit between one and five percent for physical goods, with higher figures where the visitor arrived with strong intent. Comparison and "best X for Y" content converts markedly better than general content, because the reader is already in a buying mindset.
The most useful figure to track is earnings per thousand visitors, shown above. It collapses the whole chain into one number and lets you compare pages, programmes and content types directly.
Commission rates by category
Rates vary widely and correlate with margin. Physical goods on large marketplaces often pay one to five percent, because margins are thin. Software and digital products commonly pay 20 to 50 percent, and some offer recurring commission for the lifetime of a subscription. Financial products, hosting and insurance often pay substantial flat fees per conversion rather than a percentage.
Recurring commission is worth seeking out. A subscription paying twenty percent monthly is worth many times a one-off payment of the same size, and it makes income considerably more predictable.
Things the calculation does not capture
Cookie duration matters. If a programme uses a 24-hour cookie, purchases made a week later earn you nothing. Longer windows of 30 to 90 days convert substantially better on considered purchases.
Returns and cancellations are deducted, and in some categories are significant. Payment thresholds mean small earnings may sit unpaid for months. And seasonality is pronounced in retail categories.
Disclosure is a legal requirement
In the United States the FTC requires clear and conspicuous disclosure of affiliate relationships, and similar rules apply in the UK, EU and elsewhere. Disclosure must be near the link and understandable — a line in a footer does not satisfy it. Most programmes will also terminate accounts for non-compliance.
Not financial advice
These are projections based on the figures you enter, not predictions. Calculation happens in your browser with nothing transmitted.
Frequently Asked Questions
What is a realistic conversion rate?
One to five percent is typical for physical goods. Content where the reader already intends to buy, such as reviews and comparisons, converts considerably better.
Why does earnings per 1,000 visitors matter?
It collapses the whole chain into one number, letting you compare pages, programmes and content types directly.
Which commission rates are best?
Digital products and software pay far more than physical goods, often 20 to 50 percent. Recurring commission on subscriptions is worth many times an equivalent one-off payment.
What is cookie duration and why does it matter?
How long after a click a purchase still credits you. A 24-hour window misses considered purchases; 30 to 90 days converts far better.
Do I have to disclose affiliate links?
Yes. Clear disclosure near the link is legally required in the US, UK, EU and elsewhere, and programmes terminate accounts for non-compliance.