Affiliate Marketing Glossary
What is Lifetime Value (LTV)?
The total revenue a business expects to earn from a single customer over the entire duration of their relationship. Understanding LTV helps affiliates prioritize promoting products with high customer retention and recurring revenue.
Related Terms
Recurring Commission
A commission structure where affiliates earn ongoing payments for as long as the referred customer remains a paying subscriber. Common in SaaS and subscription-based affiliate programs, recurring commissions provide passive income that compounds over time.
Churn Rate
The percentage of customers who cancel or stop using a service within a given time period. For affiliates earning recurring commissions, a lower churn rate means commissions continue for longer, increasing overall earnings.