Different types of Affiliate Marketing Programs in Short?FindMyTricks » Short Answers (FAQ's) »
Last Updated on 26th June 2022 by Ajmer Singh
Different types of affiliate marketing programs
Affiliate marketing is a program in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
In all types of Affiliate Marketing Programs, both parties have to work together closely in order for it to succeed.
Affiliate marketing comes in many forms, sometimes the affiliate is paid a flat fee for each customer or sale referred,
and other times they are paid a percentage of whatever has been sold from their referral.
The four main types of affiliate marketing programs are Pay-Per-Click (PPC), Pay-Per-Lead (PPL), Pay-Per-Sale (PPS) and Cost per Action (CPA).
This is one of the most common types of affiliate marketing programs.
With this type of program, affiliates earn a commission for each click on a link or banner posted on their website which is linked to an advertiser’s website.
Many companies make use of this technology and it is becoming more popular by the day,
as more people use the internet for shopping and reading reviews about what they are looking to buy.
This is another common type of affiliate marketing program which is used by many different types of advertisers.
An advertiser will pay an affiliate a certain amount for each lead.
Which is defined as someone submitting their name, email address and phone number into a form on the affiliate’s website.
This type of program is also known as revenue sharing or residual commission.
A company that runs this type of affiliate marketing program will pay an affiliate a percentage of the total sales generated by customers they referred to buy something from their site.
To find out how much an affiliate will earn for each sale, the earnings are typically calculated as a multiple of what is known as the ‘first-tier commission’.
For example, if an affiliate placed an advertisement that brought in 10 sales, their first tier might have earned them $40.
If they were running a first-tier PPS program their next tier commissions would be 2% on sales which brought in $800.
Cost per Action (CPA)
This type of affiliate marketing program is used by some companies who are looking to gain traffic quickly without having to pay for it up-front.
The advertiser will set a maximum amount they are willing to spend on acquiring new customers through affiliates marketing efforts, this is known as the Cost per Action (CPA).
They will pay the affiliate only when the affiliate has successfully brought them a new customer.
Thanks for reading! Hope our short answers help you.
DISCLOSURE: When you buy through links on my site, I may earn an affiliate commission. This keeps it 100% reader-supported and free of ads or sponsorships. Thank you for your support!