Question about BeNaughty/EasyDate/CupidPlc Affiliate

I am very new in affiliate marketing. I saw an Ad from Easy Date/BeNaughty "Get up to $6 for each Lead". I started with this offer. After few day of starting BeNaughty campaign I found a number of leads and one sale. Which made me earn near about $100. Which inspired me to make more more leads, I made more leads but I found my earning became $59 from $98. I asked them " Yesterday my commission was around $100 but since today it is $59. What made my commission half? " and they answered

Thank you for contacting Cupid Affiliate team.

Your commissions recalculates automatically every day according to your current conversion rate.

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Is this how Affiliate works? Is it correct?

Yeah that's how it works. Most of the adult affiliates that I joined has the same structure regarding their conversion ratio. Let's say you earned $100 for a paid sign up from 10 leads. It will not be the same when you got 1 paid sign up from 20 or 30 leads. You should maintain a high paid to free join ratio in order to get their maximum payouts.