A good head for math?

[Almighty Colin]

From the point of view of the affiliate

1. The upfront payout

Your payout = $ABC

2. In the recurring case:

Your payout =
(Avg number of months retained)*(%payout)*(Monthly member fee)

From the point of view of the sponsor,

1. The upfront payout

Your "profit" (referencing affiliate payout only) =
(Avg number of months retained)*(monthly member fee) -$ABC

2. In the recurring case

Your "profit" =
(Avg number of months retained)*(monthly member fee) -
(%payout)*(Monthly member fee)*(Avg number of months retained)

= (1-%payout)*(Monthly member fee)*(Avg number of months retained)


That's just considering the affiliate costs which if I understand your question correctly answers it. If you want a more complete model just add more variables to the subtraction side of the equation for any other costs such as chargebacks and creditbacks which might effect one type of payout and not the other depending on how you do things.