Telehealth Affiliate Economics: A Worked Example
Telehealth Affiliate Economics: A Worked Example
This worked example models telehealth affiliate economics with clearly hypothetical numbers: traffic cost, qualified events, reversals and, only where the contract supports it, retention. It shows how to think through the math. It isn't a forecast or a promise of earnings.
Telehealth payouts can look generous until you account for traffic costs, qualification rules and reversals. Walking through a model before you spend money helps you set realistic expectations.
Define hypothetical inputs and payable events
All numbers below are hypothetical, chosen only to illustrate the method.
- Paid traffic: 5,000 visits at $0.80 per visit = $4,000 spend
- Intake start rate: 6% (300 intakes)
- Qualification rate: 70% (210 qualified leads)
- Conversion to first paid month: 30% of qualified (63 patients)
- Payout: $120 per first paid month (CPA)
- Reversal rate: 12% of first months
Calculate acquisition cost
- Cost per qualified lead: $4,000 ÷ 210 = about $19
- Cost per first paid month: $4,000 ÷ 63 = about $63
These are your costs before any payout.
Apply qualification and reversal assumptions
- Gross payout: 63 × $120 = $7,560
- Reversals: 12% × 63 ≈ 8 reversed, so 55 paid × $120 = $6,600
- Net after traffic cost: $6,600 − $4,000 = $2,600 in this hypothetical
Change one assumption, such as the conversion rate falling to 20%, and the result changes sharply: 42 patients, about 37 after reversals, $4,440 payout, $440 net.
Explore retention only when contract terms support it
If, and only if, the contract pays recurring commission:
Hypothetical: $30 per renewal month, 60% of patients renew in month two and 45% in month three. On 55 patients that's 33 + 25 = 58 renewals × $30 = $1,740 extra over two months.
Interpret sensitivity and limitations
| Assumption | If it worsens | Effect |
|---|---|---|
| Traffic cost | +25% | Net falls by $1,000 |
| Conversion to paid | 30% → 20% | Net falls by about $2,160 |
| Reversal rate | 12% → 25% | Net falls by about $1,000 |
Limitations:
- Real rates vary by audience, offer and season.
- Telehealth traffic is limited to licensed states, which affects volume.
- Paid search and social for prescription telehealth usually require advertiser approval and certification.
Use a small, capped test to replace these assumptions with your own data. Our leads versus sales guide explains the events.
Key terms used in this example
- Accepted conversion: a conversion the advertiser has validated against its rules and won't reverse.
- Reversal: a conversion taken back because of a refund, cancellation, chargebacks or a clinician declining treatment, within the window the terms set.
- Retention: the share of patients still paying after a set number of months. It only matters to you if the contract pays recurring credit.
- Contribution margin: what you keep from accepted conversions after the costs directly tied to earning them, such as paid traffic.
Every number in this guide is hypothetical. Real payouts are set in each advertiser's brief and aren't published.
Frequently asked questions
Who is this guide for?
Media buyers and publishers deciding whether a telehealth offer can work for their traffic.
What should I gather before I start?
Your traffic cost, the program's payout definition, qualification and reversal rules, and whether recurring commission is paid.
How should I judge the result?
Run a capped test, compare actual rates with your assumptions, and only scale if the numbers hold up over several weeks.
Practical guides and programs for health and beauty publishers.
Educational content for marketers and publishers, not medical, legal or financial advice. Examples labeled hypothetical are illustrations, not results. MarketHealth may earn revenue from programs it describes. See our affiliate disclosure and editorial policy.
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