1. Cost Per Sale (CPS):
Cost Per Sale, often referred to as CPS or Pay Per Sale (PPS), is a popular payment model in affiliate marketing. In this structure, affiliates earn a commission whenever a referred customer makes a purchase through their unique affiliate link. The commission is usually a percentage of the total sale value. CPS is advantageous for businesses since they only pay when a sale occurs, ensuring a direct return on investment.
2. Cost Per Click (CPC):
Cost Per Click, or CPC, is a payment model where affiliates earn a commission based on the number of clicks their affiliate links receive, regardless of whether a sale is made. While CPC may not guarantee direct sales, it can be useful for driving traffic to a website and increasing brand exposure. This model is common in industries where generating leads or driving traffic is the primary goal.
3. Cost Per Acquisition (CPA):
Cost Per Acquisition, also known as CPA or Pay Per Action (PPA), involves affiliates earning a commission when a referred customer takes a specific action, such as signing up for a newsletter, filling out a form, or completing a trial period. This model is effective for businesses looking to build their customer base or gather valuable user data.
4. Lifetime Payment:
Lifetime Payment is a payment model where affiliates continue to receive commissions for every purchase made by customers they referred, even after the initial sale. This encourages affiliates to focus on high-quality referrals and long-term customer relationships. Lifetime Payment structures are common in subscription-based services or products with recurring billing.
5. Revenue Share (Rev Share):
Revenue Share is a payment model where affiliates receive a percentage of the revenue generated by the referred customers over a certain period. Unlike CPS, which focuses on individual sales, Rev Share provides a continuous income stream as long as the referred customers remain active. This model aligns the interests of the affiliate and the business, as both benefit from ongoing customer engagement.
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