Annual vs monthly plans: which referral actually pays you more

Annual vs monthly plans: which referral actually pays you more

Everyone says "push annual plans, bigger commission!" Do the math before you believe the affiliate manager.

— Annual upfront commission looks huge but often pays LESS than 12 retained monthly commissions would.
— Annual plans have a longer refund window in many SaaS — bigger clawback risk per sale.
— Annual customers renew at 50-70%; you only get the renewal commission if recurring survives a full year and the program still exists.
— Monthly churns faster but pays you sooner and de-risks the clawback.
— Run both: (annual commission − refund risk) vs (monthly commission × realistic months retained).

Often the "smaller" monthly referral nets more cash with less reversal exposure.

Verdict: the plan that's best for their cash flow isn't automatically best for yours.