Definition
An ongoing commission earned by an affiliate on every subscription renewal or recurring billing cycle of a customer they referred. The commission is paid as long as the customer maintains an active subscription.
Formula
Total Recurring Revenue from Referred Customer × Commission Rate = Monthly Recurring CommissionExamples
If a subscription tool pays 30% recurring commission and a customer pays $100/month, the affiliate earns $30 per month for as long as the customer subscribes.
A SaaS product paying 20% lifetime means that if a customer is worth $10/month, the affiliate receives $2 monthly for as long as they stay subscribed.
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Why recurring commissions matter for affiliates
Recurring commissions turn one good referral into monthly income that keeps arriving. Instead of getting paid once and starting over, you build a base of customers who pay you again every billing cycle.
This is why subscription software is so attractive for affiliates. If you send 10 customers a month and they stay, your earnings grow month after month as new referrals stack on top of the old ones. A flat one-time payout can't compound the same way.
How a recurring commission is calculated
The math is simple. Multiply what the referred customer pays each cycle by your commission rate:
- Customer payment × commission rate = your recurring commission
- Example: a customer paying $100/month at a 30% rate earns you $30 every month.
You keep earning that amount as long as the customer stays subscribed. If they upgrade to a bigger plan, your commission usually rises with their payment.
Recurring vs lifetime commission
People mix these up, but they are not the same. A recurring commission may be capped (for example, 30% for the first 12 months only). A lifetime commission has no time limit and pays for as long as the customer stays.
Always read the program terms. "Recurring" with a cap and "lifetime" produce very different long-term earnings from the exact same customer.
Frequently asked questions
How long do recurring commissions last?
It depends on the program. Some pay for as long as the customer stays subscribed (effectively lifetime), while others cap payments at a set period such as the first 12 or 24 months. Always check the program terms, because a capped recurring deal earns far less than an uncapped one over time.
What happens if the customer cancels their subscription?
Your recurring commission stops when the customer stops paying. Because of this, affiliates earn the most from products with strong retention and low churn. If a customer downgrades, your commission usually shrinks to match their lower payment rather than disappearing entirely.
Are recurring commissions better than one-time payouts?
Often, yes, but not always. Recurring commissions compound over time and reward sticky products, so they win for long-lived subscriptions. A high one-time bounty can pay more upfront and carries no churn risk. The best choice depends on the product's retention and your traffic volume.
What is a typical recurring commission rate?
Most SaaS recurring programs pay between 15% and 40% of the customer's payment. Rates above 30% are common for self-serve tools, while higher-touch enterprise products tend to pay less per cycle but on much larger contract values.