Free affiliate program tools
Free tools

What does a recurring commission really cost?

Enter your plan price, monthly churn and the commission you are considering. The calculator shows what a partner earns per referred customer and what share of that customer's revenue it costs you.

Expected payments use your churn: a customer who stays pays every month until they cancel, and the commission stops after the months you set. Taxes and refunds are not included.

A partner earns per referred customer
$90.09
20.0% of the revenue that customer brings in during the commission window
Expected payments in the window
9.2
Revenue per customer in the window
$450
Commission for 10 customers a month
$901
Total over each cohort's window
Of which recurring commission
$90.09

Questions

What is a normal recurring commission for SaaS?

20% to 30% of each payment for 12 months is the most common range. At 5% monthly churn, 20% for 12 months costs about 20% of the revenue a referred customer brings in during that year, because commission only follows payments the customer actually makes.

Why does churn change the answer?

Commission is paid on each renewal, so a customer who cancels in month 4 earns the partner four payments, not twelve. Higher churn lowers the cost per customer, but each customer is also worth less.

Should I pay a first-payment bounty as well?

A small bounty ($10 to $50) helps partners see a result on the first sale. Pay it only on a real payment, never on a free trial, and keep it small enough that the recurring share remains the main reward.