Affiliate Compensation Methods Clarified
December 17th, 2008 by Click Consult
There are different compensation methods involved in affiliate marketing. This includes the predominant compensation method. Most affiliated programs today use revenue sharing or cost per sale as a compensation method.
Pay per sale or revenue sharing is where advertisers pay publishers an amount for the sales made by customers referred to by the publisher. A pay per lead involves paying publishers commission for each visitor received through the publisher’s effort to the advertiser’s website and who then performs an action. This could be anything from filling out a form to signing up.
The next type of compensation is diminished compensation methods. Cost per mille used in very few affiliate-marketing programs, require that the publisher make advertising available on the site and display it to visitors so that commission can be received.
Pay per click works the same but also involves a conversion process. Here the visitor must be aware of the advertisement and then click thereon to visit.
Cost per click is also diminishing because of click fraud.
How Performance Marketing Works
Cost per mille and cost per click usually poses a risk and loss to advertisers as publishers earn there commission before the visitors becomes member of the advertiser website. The conversion process does not affect the publisher.
In terms of compensation through performance or cost per action, visitors are required to do more than merely visit a sight before affiliates can actually gain a commission. Conversion is vital and so the risk does not lie on the advertiser, instead the affiliate shares such risk. Affiliates are seen as an additional sales force.
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Great post. Affiliate marketing is one of the best way to earn extra income. You must do right, choose the right product/services for you to become successful in this business.
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