Definition

Lifetime commission

A lifetime commission keeps paying for as long as the referred customer pays, with no time limit. It is the most generous form of recurring commission.

It is the strongest recruiting argument a program has, and also the easiest to announce without pricing it. “Lifetime” means the commission runs for as long as the customer stays, not for as long as the affiliate stays active.

The calculation is straightforward and must be done on average customer lifetime, never on the first month. Twenty percent for life on a customer who stays thirty months means giving up six months of revenue. That is not a reason to refuse — a customer acquired at fully variable cost, with no advertising budget fronted and no risk, is still very profitable — but the number belongs before the announcement, not after.

Reasonable alternatives exist and are well accepted: a capped duration (twelve months is common), a rate that steps down after the first year, or a higher rate on the initial sale and a lower one afterwards. What is hard to forgive is promising “lifetime” and shortening it later: the affiliate built their content on that promise.

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