What it means
In affiliate marketing, return on investment (roi) a measure of profitability comparing the revenue generated from an affiliate program to its total costs, including commissions, software, and management time.
Why it matters
Whether you're launching a new affiliate program or scaling an existing one, understanding return on investment (roi) helps you make better decisions about commission structures, partner recruitment, and growth tactics. Most SaaS founders run into this concept early and benefit from a clear mental model before they start building.
How Refgrow handles it
Refgrow has built-in support for the patterns described above. Calculate referral ROI to see it in context.
See also
Related terms in the affiliate marketing glossary that connect to return on investment (roi):
- Revenue Share -- A commission model where the affiliate earns a percentage of the revenue generated from referred customers, as oppose...
- Self-Referral -- When an affiliate uses their own referral link to make a purchase for themselves. Most programs prohibit self-referra...
- Sub-Affiliate -- An affiliate recruited by another affiliate within a multi-tier program. The recruiting affiliate earns a percentage ...