Key Performance Indicators (KPIs) are the benchmarks that will guide your decisions as a new affiliate partner on which brands to partner with and help you estimate the potential revenue opportunities from each campaign.
At Solais, we are committed to helping affiliate partners learn how to optimize their affiliate and performance-based campaigns. Whether you’re just starting or looking to refine your campaign and partnership strategies, we’re here to provide the tools, insights, and support you need to make informed decisions and maximize your earning potential.
Key KPIs to Know as a New Affiliate Partner
Earnings Per Click (EPC)
EPC represents the average earnings you can expect for each click driven to the brand’s website through your affiliate link. For example, if a program offers $50 for every 1,000 clicks, the EPC would be $0.05 per click.
How to Use EPC: A higher EPC often indicates strong conversion rates or higher commission payouts. Use this metric to compare programs in the same niche to gauge which offers better-earning potential for the same effort.
Conversion Rate (CR)
This percentage shows how many clicks on your affiliate link result in a completed action, such as a purchase or sign-up. For example, if 100 clicks lead to 5 sales, the CR is 5%.
How to Use CR: High conversion rates signal that the brand’s website, products, and pricing resonate with the audience. Pair this with EPC to evaluate whether the brand’s program aligns with your audience’s behaviour.
Average Order Value (AOV)
AOV measures the average dollar amount spent per transaction by customers referred through your affiliate link. Programs with higher AOVs often yield larger commissions.
How to Use AOV: Brands with higher AOVs can generate significant earnings, even with modest commission rates. Look for programs offering both strong AOV and competitive commission structures.
Commission Rate
This is the percentage or flat amount you earn per sale or lead. Commission rates vary by program, product category, and sometimes by partner type (e.g., content creators vs. coupon sites).
How to Use Commission Rates: Pair this metric with AOV to determine how much you could potentially earn per transaction. A 10% commission on a $100 AOV offers better potential than 20% on a $20 AOV.
Reversal Rate
The percentage of commissions cancelled due to returns, fraud, or order cancellations. High reversal rates reduce overall earnings and indicate potential risks with the program.
How to Use Reversal Rate: Choose brands with low reversal rates to ensure your hard-earned commissions are more likely to stick.
How New Affiliate Partners Can Use KPIs to Choose the Right Brands
Align KPIs with Your Audience’s Interests
If you’re an influencer in the home décor niche, prioritize brands with a high AOV and strong conversion rates on home goods. A high EPC with steady commission rates might be more impactful for a fashion audience.
Compare Across Programs
Look at multiple affiliate programs in the same category. If Program A has a $1.50 EPC and a 2% CR, while Program B has a $3.00 EPC but a 1% CR, calculate which program offers the best balance for your traffic.
Research Program Reputation
Check for reviews or insights from other affiliates. High reversal rates or inconsistent payments are red flags, no matter how enticing the upfront metrics seem.
Estimating Potential Revenue Opportunity
To estimate how much you could earn from a program, consider the following formula:
Revenue = (Clicks x Conversion Rate x AOV) x Commission Rate
For example:
1,000 clicks per month
3% conversion rate
$100 AOV
10% commission rate
Revenue = (1,000 x 0.03 x 100) x 0.10 = $300 per month
This formula helps you assess whether a campaign aligns with your revenue goals and the effort required to drive traffic.
As a new affiliate partner, understanding and leveraging KPIs is essential to choosing the right brands and maximizing your earnings. You can make informed decisions by analyzing EPC, conversion rates, AOV, commission rates, and reversal rates. Remember, the best affiliate programs aren’t just about the numbers—they’re also about aligning with brands that resonate with your values and audience.
When you focus on partnerships that make sense both financially and contextually, success is sure to follow. Working with Solais can help you find brands committed to your success. Register with us today to learn about new opportunities and to receive resources to help you leverage your revenue potential as a new affiliate partner.
