Affiliates are compensated through a variety of payment mechanisms used in affiliate marketing, including:
Pay-Per-Sale (PPS):
Payment: When a customer they have referred makes a purchase, affiliates are paid a commission.
Benefit: Aligns interests as affiliates get money from real sales generated by their promotions.
PPC, or pay-per-click
Payment: Whether or not a sale is made, affiliates get compensated for the clicks they create via their referral links.
Benefit: Affiliates are rewarded for bringing in traffic; however, earning does not depend on conversion.
Cost-Per-Action (CPA) or Pay-Per-Lead (PPL):
Payment: When suggested customers complete a particular activity, such completing a form or signing up for a trial, affiliates are paid a commission.
Benefit: Offers flexibility because affiliates receive payment for activities other than making direct sales.
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