Mastering Affiliate Reconciliation
Running an affiliate program isn't just about tracking clicks; it's about accurate financial reconciliation. One of the most common friction points between merchants and affiliates is the Payout Calculation.
Affiliates often look at "Gross Sales" and expect a certain check size. However, real-world business involves refunds, chargebacks, and minimum thresholds. This Affiliate Payout Calculator helps you bridge that gap, providing a clear breakdown of how you get from "Gross" to "Net".
Refund Handling
Automatically calculating deductions for returned products ensures you maintain your profit margins and don't pay for invalid sales.
Fraud & Clawbacks
Accounting for self-referrals or fraudulent clicks is critical. These must be deducted before money leaves your bank account.
Threshold Management
Enforcing minimums (e.g., $50) prevents you from wasting time processing hundreds of tiny $2 payments every month.
The Payout Formula
To ensure your ledger stays balanced, use this standard reconciliation logic:
- (+) Gross Pending CommissionsSales tracked in period
- (-) Refund DeductionsCustomers who requested money back
- (-) Fraud / ClawbacksInvalidated conversions
- (=) Net BalanceAvailable for payout