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Returning Customer Agency Fees is the agency cost Upstack charges against repeat orders when it calculates Returning Customer CM4: agency order fees on those orders, plus a share of your agency retainers based on how much of your net revenue came from returning customers.

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Formula

RC Agency Fees = Agency Fees order fees on returning customer orders + returning customer share of Recurring expenses with category Agency Fees (prorated to the date range)

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Formula Components

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How It Works

  • Order fees follow the order. Agency order fees on returning customer orders count here. Fees on first orders count in NC Agency Fees.
  • Recurring expenses are split by net revenue. A retainer has no order, so Upstack gives returning customers a share in proportion to their net revenue for the same date (and the same breakdown values, if you split the report by a dimension). See how the split works.
The retainer is split, not copied, so NC Agency Fees + RC Agency Fees adds up to Agency Fees, apart from fees on orders with no customer.

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Example

A brand pays an affiliate agency 4% of net sales (an order fee) and a $4,500 Monthly retainer to its paid social agency. You view a 30-day month. Returning customers brought in 60% of net revenue, so RC Agency Fees carries 60% of the retainer: $2,700. With 3,000 returning customer orders, that’s about $2.66 of agency cost per repeat order ($7,980 ÷ 3,000).

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When to Use

See all Contribution Margin metrics →