Example: a $25 product with 20% affiliate commission
Here's how the math runs on a typical affiliate-driven order:
- Sale price: $25.00
- Referral fee (8%): −$2.00
- Transaction fee (2.5%): −$0.63
- Affiliate commission (20%): −$5.00
- Platform + affiliate total: −$7.63
- Revenue after fees (before COGS): $17.37
From that $17.37, subtract your COGS, shipping, and a returns reserve. For a typical 30%-COGS product ($7.50), your net contribution margin per order is about $9.87 — enough to fund ads, outreach software, and samples while staying profitable.