Average Order Value in affiliate marketing is the average amount customers spend when they buy through your affiliate links.
Think of it as the typical size of a shopping cart when someone makes a purchase through your recommendations.
Imagine you own two restaurants. At Restaurant A, 10 people spend $10 each. At Restaurant B, 5 people spend $30 each. Both restaurants make $100, but Restaurant B’s AOV ($30) is three times higher than Restaurant A’s ($10). This same principle applies to affiliate marketing – it’s not just about how many sales you make, but how much each sale is worth.
How We Calculate It
Here’s the simple math:
AOV = Total Revenue Number of Orders
What People Get Wrong About AOV
The biggest misconception is thinking that higher AOV always means better performance.
Here’s the truth: sometimes a lower AOV with more frequent purchases can be more profitable than fewer, larger purchases. It’s about finding the sweet spot for your specific niche.
Early Mistakes to Avoid
Many new affiliate marketers make these common errors:
- Focusing only on expensive products to boost AOV
- Ignoring how AOV changes during different seasons
- Not considering how different traffic sources affect AOV
- Pushing products that don’t naturally go together
Real-World Example
Let’s say you’re promoting fitness products. A beginner affiliate might only promote expensive treadmills ($1000+). A smarter approach might be promoting starter workout bundles ($150) that combine resistance bands, workout plans, and nutrition guides – items that naturally complement each other and are easier to sell.
Quick Health Check
- Look at your last month’s numbers: Total revenue from affiliate sales Number of orders processed Divide revenue by orders This gives you your current AOV baseline. Weekly Habit Builder
- Every Friday, take 10 minutes to: Check your AOV for the week Compare it to previous weeks Note any products that consistently drive higher order values Monthly AOV Review
- At the end of each month, ask yourself: Has my AOV increased or decreased? Which products contributed to higher AOV? Were there any successful product combinations? The Hidden Truth About AOV
Here’s something most “gurus” won’t tell you: sometimes a lower AOV can actually lead to higher total profits. Why? Because customers who make smaller, more frequent purchases often have higher lifetime value than one-time big spenders.
Next Steps for Beginners
- Calculate your current AOV
- List your top-selling products
- Look for natural product combinations
- Test different price point promotions
Related Terms to Know
When tracking AOV, you’ll want to understand these connected metrics: Conversion Rate (CR) shows what percentage of visitors buy, Customer Lifetime Value (CLV) reveals how much customers spend over time, and Earnings Per Click (EPC) tells you how much you make per affiliate link click.
Together with AOV, these metrics give you the full picture of your affiliate performance.
Best Tools for Tracking
Google Analytics 4 is your best free option for basic AOV tracking. For professional affiliates, Affluent.io is worth the investment as it tracks AOV across multiple networks in one dashboard.
If you’re focused on Amazon, AzonMetrics provides specialized AOV insights for Amazon Associates. Choose a tool that connects with your networks and gives actionable data, not just numbers.
Remember, AOV is just one piece of the affiliate marketing puzzle, but understanding it can help you make smarter decisions about what to promote and how to promote it.
💡 Deep Comprehension Quiz
Q1: If your AOV drops from $100 to $75 but your conversion rate doubles, what happens to your total revenue?
Click to see answer
Your revenue would actually increase by 50%! While each order is worth less, you’re getting twice as many orders. This shows why AOV shouldn’t be viewed in isolation.
Q2: What’s the relationship between AOV and Customer Lifetime Value (CLV)?
Click to see answer
While AOV measures single purchase value, CLV shows total customer spending over time. Sometimes lower AOV customers make more frequent purchases, resulting in higher CLV.
Q3: Why might focusing solely on increasing AOV be a mistake?
Click to see answer
Pushing for higher AOV might reduce conversion rates or increase return rates. The key is finding the balance between AOV and other metrics like conversion rate and customer satisfaction.
