What Is the Average Commission for Affiliate Programs?

There’s no universal average affiliate commission, particularly in a field as dynamic as lending. Since each program uses different payout models and qualification criteria, you could end up with a significantly different average than others.

Does that mean you can never figure out your average? Not quite. Once you learn about important elements like cost per action, revenue share, and lead-based payouts, you’ll get a better idea of your earning potential.

Our guide will teach you the fundamentals of earning passive income on commissions, the variables that matter most, and how you can get started today. 

How Are Personal Loan Affiliate Commissions Calculated?

Calculating your average commission for affiliate programs starts with calculating different costs. Don’t worry: you don’t need to be an expert in math to learn these basics.

The commission calculations you’ll use depend on your loan affiliate program’s individual specifications.

Cost Per Action (CPA)

The cost per action refers to how an affiliate earns a set commission whenever a consumer completes the qualifying action defined by the offer. For example, this action could be filling out a loan request form (lead). 

Revenue Share

Alongside the cost per action, your compensation can be tied to the revenue generated from the affiliate program’s online traffic. Unlike fixed payments, revenue share is highly variable, so it can be a little more difficult to narrow down an average affiliate commission range. 

For example, you may see lower traffic one month, then a spike in traffic the next month. 

Lead-Based Payouts

Some programs value leads based on whether or not they fully meet the requirements needed to connect them with a lender. Similar to a cost per action, you’ll receive a commission based on whoever fulfills the action of filling out a form, then gets connected to a lender.

While all payment structures have their ups and downs, you don’t have to pick just one with Round Sky. We provide both CPA and revenue share opportunities for our personal loan affiliate programs. 

Why Can One Personal Loan Lead Be Worth More than Another?

Some personal loan leads are considered more lucrative than others based on their behavior. For example, increased web traffic might be a sign of improvement, but higher numbers don’t automatically result in payments if the visitors still aren’t interested.

As a result, many loan programs prefer to look at these metrics to determine a lead’s worth.

Traffic Source

Different sources will show unique consumer intent and conversion performance. For example pay per click traffic source where a consumer may already be searching for ‘loan online’ will have a lot more intent then someone browsing for shoes online and seeing an ad to get a loan.

Consumer Fit 

Determining an average affiliate commission range involves assessing how well consumers connect with the offers you’re promoting. One key factor in assessing a lead’s value is whether the lead meets the eligibility criteria lenders typically look for.

While some leads with high credit score will fetch a higher affiliate commission, leads with lower credit scores may still earn the affiliate some commission, as long as the affiliate understands the more risky the consumer, the less likely they are to qualify for a loan with a lender. 

Lender Availability

Similar to customer fit, you should also have lenders who are able to serve multiple personal loan customers profiles. The more participating lenders you have in your program, the more monetization opportunities you’ll have. 

Round Sky works with over 50 lenders around the country increasing the likelihood of a conversion and commission earned for the affiliates that work with Round Sky. 

Lead Quality

The Internet is filled with bots and spammers that spread false information about customer behavior. When you need accurate and complete consumer information to earn more income from your affiliate program, fraud controls are essential.

Round Sky’s affiliate program helps mitigate fraud by paying commissions on qualifying actions instead of treating every submission as commissionable. So if someone tries to ruin an affiliate’s reputation, Round Sky’s team is there to help to thwart bad actors and bad leads.

Consumer Credit

Since each lender has different eligibility and targeting criteria, a consumer’s overall profile will affect which lenders they can borrow from. When crafting your personal loan promotional campaign, carefully review your program’s requirements to make sure your customer profiles are consistently matching lender needs. 

What Can Affiliates Do to Improve Their Commission Potential?

Figuring out your average affiliate commission is only the start of your journey. When you focus on the following metrics, you can gradually increase this average commission over time.

Send Relevant Traffic

Not all traffic is good traffic. When you actively attract customers who are already interested in a personal loan, you’re far more likely to earn more revenue. 

Track Your Performance

Reviewing your monthly traffic sources will help you figure out how to aim your offers and where. Ask yourself questions like, “Which affiliate offers generate the most revenue?” or “Which visitors are most likely to convert and why?” Then optimize from there.

Work Closely with Your Affiliate Network

Affiliate managers are there to help you get the most out of the partnership. After all, your success is their success. When you keep an open line of communication with affiliate managers, they can help you stay updated on available offers or potential performance opportunities. 

Round Sky provides affiliate partners with real-time reporting, including commission breakdowns across CPA offers, website widgets, and related channels. We also offer daily projections to help you spot trends early.

Think in Terms of Performance, Not One Average Rate 

There is no single average affiliate commission that will represent every personal loan affiliate program out there. Fortunately, you can create your own average by working closely with your affiliate managers and following the fundamentals. 

Lender availability, consumer fit, and traffic performance are just a few places to start tailoring your affiliate marketing campaigns. Closely matching your offers with audience needs and tracking your performance is how you steadily grow your affiliate program into a side hustle.

Round Sky’s multiple payout structures give you more earning potential, while our reporting tools help you evaluate your performance and improve your earnings over time. Sign up for our personal loan affiliate program today to start developing your passive income stream.