ARPU (Average Revenue Per User)

ARPU (Average Revenue Per User) is calculated by dividing total revenue generated during a specific period by the number of active users in that same period. It is a foundational metric for evaluating the quality and value of traffic that affiliates send to an operator's platform. A higher ARPU from a particular affiliate's referrals indicates that those users are generating more revenue per person, which directly informs how much the operator can afford to pay in commissions.

ARPU is a powerful tool for comparing affiliate performance across different sources and campaigns. By segmenting ARPU by affiliate, traffic source, geography, or sub-ID, operators can identify which partners deliver the highest-value users and allocate budgets accordingly. Affiliates with high ARPU referrals may qualify for premium performance tiers or enhanced payout models. Conversely, affiliates with low ARPU may indicate traffic quality issues that warrant further investigation or adjusted commission structures.

It is important to distinguish ARPU from LTV (Lifetime Value). ARPU is a periodic metric -- it measures revenue per user over a defined time window (e.g., monthly or quarterly). LTV is cumulative, projecting the total revenue a user will generate across their entire relationship with the platform. The relationship is straightforward: ARPU multiplied by user count equals total revenue for the period, while LTV aggregates ARPU across multiple periods. Both metrics are essential, but ARPU provides the more actionable short-term view for affiliate program optimization.