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  1. #1
    Affiliate Manager
    Join Date
    February 13th, 2012
    Affiliates compensation methods

    I have read different articles and FAQ of various networks regarding compensation methods used in affiliate marketing.

    Some says there are three methods i.e. CPA (cost per action),CPL(cost per lead) and PPS (pay per sale), with a PPS used in majority.

    Some says there are two methods i.e. CPA (cost per action)/CPL(cost per lead) and PPS (pay per sale). They said CPA/CPL are same, as lead can be an action defined by merchant.

    Some says CPA/PPS are same as sale is an action that is defined by the merchant in his goal definition.

    Can someone please clear me about standard compensation methods used in affiliate marketing?

    I appreciate your reply.


  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Park City Utah
    Can someone please clear me about standard compensation methods used in affiliate marketing?
    There is no standard, it depends on what you are trying to achieve. What are you offering to the consumer and what is the action?

  3. #3
    Outsourced Program Manager Chris -  AMWSO's Avatar
    Join Date
    January 18th, 2005
    Various networks mix the terms and you'll see them displayed in various different formats, but generally there is

    Lead Generation : paying per qualified lead (which could be a sign up action or filled form action)
    Pay Per Sale : Paying per valid sale
    Pay Per Call : Paying for phone calls that generate valid leads

    But some affiliate networks allow merchants to also pay on ;

    Click : Paying per click
    Impressions : paying for banner impressions (not so common now a days)

    I'm sure there a couple more that could be added.


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  4. #4
    Affiliate Manager affilorama's Avatar
    Join Date
    July 28th, 2008
    Christchurch, New Zealand
    Chuck is right. There are various compensation methods in affiliate marketing. There is no known "standard" that you have to follow. You have to base your compensation method on what your product is and how it is offered to customers. It also depends on the customer's "action", that is, will they need to enter their email address or do they need to click on the link.

    Hope that helps. Have a good day!
    Affilorama Group Ltd
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