How do you measure the success of an affiliate program?
Here is a list of affiliate marketing KPIs that help you measure marketing effectiveness:
- Traffic from affiliates.
- Lifetime value of referred customers.
- Percentage of active affiliates.
- Incremental revenue from affiliates.
- Contribution margin.
How do affiliate marketing metrics work?
Most commonly tracked affiliate program metrics Total purchases through affiliate links. Total revenue from affiliates. Return on investment / return on ad spend. Customer lifetime value of customers from affiliate programs.
How much should an average affiliate commission rate be?
Taking into account a variety of factors, an average affiliate commission rate should be somewhere between 5\% to 30\%. Here’s a rundown of the factors that will change the average affiliate commission rates you’re coming across online. What Affects Average Affiliate Commission Rates?
What is a 1\% referral rate?
So a 1\% referral rate means that 1 in 100 purchases at your store happen through your referral program. An Advocate shares a referral link (typically via social media, referral email or IM). Their friend clicks on that referral link, and goes on to make a purchase at your store.
Is a high business referral rate always a good thing?
High referral rates aren’t everything. A high business referral rate is generally nice to have, but it isn’t necessarily a great sign. It could also mean that your other customer acquisition channels aren’t mature enough.
Do companies really value their affiliate marketers?
On the other hand, there are companies that truly do value their affiliate marketers. To make sure their affiliates are happy, they provide higher commission rates. This is mutually beneficial, and both the company and the affiliates end up happier. High Commission Rates on Cheap Items or Low Commission Rates on Expensive Items: Which Is Better?