LTV (Customer Lifetime Value)
LTV, or customer lifetime value, is the total revenue a business expects to earn from a customer over the entire relationship.
LTV estimates how much a customer is worth across all their purchases or subscription renewals, not just the first sale. It helps merchants decide how much they can afford to pay affiliates: a program can offer generous recurring commissions when each referred customer has a high LTV.
In subscription and SaaS programs, LTV is the natural anchor for recurring and MRR-based commissions, since those models pay partners in proportion to the long-term value their referrals create.
See also
- Recurring Commission
A recurring commission pays the affiliate a share of every renewal payment a referred customer makes, not just the first sale.
- MRR Commission
An MRR commission ties an affiliate's earnings to the monthly recurring revenue a referred customer generates, paying a percentage of that MRR over time.
- AOV (Average Order Value)
AOV, or average order value, is the average amount spent each time a customer places an order, calculated as total revenue divided by number of orders.
- SaaS Partner Program
A SaaS partner program is a structured program through which a software company rewards external partners — affiliates, referrers, and resellers — for driving new subscriptions.
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