Measurement and metrics
Conversion
Also called conversion event, goal completion, target action, affiliate conversion.
Short answer
A conversion is the action an affiliate program pays commission for – usually a completed purchase, but also a lead, a sign-up or an install. The conversion is recorded with a click ID, matched against the click and creates the commission according to the program's model.
Definition of Conversion.
What counts as a conversion is defined by the program: in CPS programs a completed sale, in CPL an approved lead, in CPI an app install, and in broader CPA deals any defined action. The definition is part of the program terms – the same network can host programs that pay for very different actions.
Technically, a conversion is an event reported back to the tracking system when the action happens – from a script on the thank-you page, a server call or a platform integration. The event carries order or lead details, the amount and the click ID. The system looks up the click, checks that the action falls within the attribution window and calculates the commission. Without a click ID to carry, the event cannot be credited to any affiliate.
A conversion is not the same as money. It is born as pending and has to pass approval before it becomes a balance that can be paid out: the right of withdrawal, returns and breaches of terms are settled in the period between conversion and approval. The commission base is normally the order value excluding VAT – VAT is the state's money, not the store's revenue, which is why commission is calculated on the net amount.
The life cycle of a conversion
The process is the same across models: the event is recorded and created as pending; the system checks for duplicates on the order or invoice ID; the click and attribution window are validated; the commission is calculated at the agreed rate. The conversion then waits for approval by the store, which can reject it with a reason – the rest is approved, and only then does the amount move from pending to earned.
A usable conversion event carries at least 4 fields: an order or invoice ID for deduplication, the order value excluding VAT as the commission base, the currency and the click ID. If one of them is missing, a predictable error follows – without an order ID duplicates are not caught, without the net amount the commission is calculated on the wrong base, and without a click ID the sale cannot be credited to any affiliate.
The delay is a condition, not a fault. In Denmark, the right of withdrawal for distance sales is 14 days, and stores need time to see returns, chargebacks and fraud before the commission is final. That is why programs work with approval deadlines – and why pending commission is an estimate, not a receivable.
Conversion vs. sale
| Aspect | Conversion | Sale |
|---|---|---|
| Scope | any action the program pays for | a completed order |
| Models | CPS, CPL, CPI and CPA | CPS only |
| Commission base | fixed amount or percentage, depending on the model | usually a percentage of the order value excluding VAT |
| Examples | purchase, lead, sign-up, install | purchase |
Every sale in a CPS program is a conversion, but a conversion does not have to be a sale – it is exactly the action the program has defined as the goal.
How it goes wrong
- 01
The thank-you page pixel fires more than once
If the customer reloads the page or returns from the payment step, the event is sent again. Without deduplication on the order ID, one purchase becomes several commissions – with deduplication, the repeat is harmless.
- 02
The order value is sent including VAT
If the gross amount is sent, the commission in Denmark is calculated 25 % too high. The base must be the order value excluding VAT, and the error is often only discovered when the settlement does not match the accounts.
- 03
Reading pending as earned
A conversion can still be rejected because of a return or a breach of terms. Affiliates who budget with pending amounts and stores that forget the approval deadline are both in for unpleasant surprises.
At Affilyflow
Conversion in practice
At Affilyflow, every conversion is created as pending – a conversion never automatically credits a balance. The same order can never count twice: deduplication is done on the order and invoice ID per program. The commission is calculated at the rate locked at the moment of the click, and on the amount excluding VAT – although via the Shopify app it is calculated on the value of the goods without shipping, where it is not yet confirmed whether VAT has been deducted.
Approval has a fixed frame: the store has the program's approval period (30–90 days) to reject a sale – after that it is approved automatically. A rejection requires a reason the affiliate can read. If a WooCommerce order or a Stripe payment is refunded, the commission is rejected automatically; on Shopify and with script-based tracking, the store handles refunds through the approval flow.
Frequently asked questions
What counts as a conversion in affiliate marketing?
The action the program has defined as its goal: a purchase in CPS programs, a lead in CPL, an install in CPI or another agreed action in CPA deals. The definition is in the program terms, so the same affiliate can have programs with completely different conversion definitions.
When does a conversion turn into money?
When it has been approved. A conversion is created as pending, and only after approval does the amount move to the earned balance. At Affilyflow, the store has the program's approval period (30–90 days) to reject – after that the sale is approved automatically, and a rejection requires a reason the affiliate can read.
Can the same order count as several conversions?
Not in a system with deduplication: repeated events with the same order or invoice ID are rejected as duplicates. At Affilyflow, deduplication is done per program, so a reloaded thank-you page or a webhook sent twice does not turn into double commission.
Why was my conversion rejected?
The common reasons are a returned item, a purchase outside the attribution window, duplicates and breaches of the program terms such as prohibited channels. At Affilyflow, a rejection always requires a reason the affiliate can read.
Read on
- Conversion rateConversion rate is the share of clicks or visits that end in a conversion, calculated as conv…
- Click IDA click ID is the unique identifier a tracking system generates for every click on an affilia…
- Sale approvalSale approval is the step in affiliate settlement where the store confirms that a recorded co…
- Pending and approved commissionPending and approved commission are the two states a sale's commission passes through: pendin…
- Deduplication (dedup)Deduplication is the check that ensures the same order only triggers commission once. The ord…