What Types of Affiliate Payment Models Are There?

While there’s no denying that affiliate marketing is a super hassle-free way to make money and increase your income, it also has its logistics, just like any other marketing method. With affiliate marketing, it’s all about how you, as an affiliate, will get paid after being the intermediary between the consumer and the seller.

Well, the answer isn’t exactly straightforward since it depends on the affiliate program. Depending on the seller’s goals and how they measure your contribution, your payment model will differ.

So, what are the different types of affiliate payment models? That’s what we’re about to discuss.

1. Pay Per Sale

The pay-per-sale model is considered the standard in the world of affiliate marketing. As its name implies, with this model, you’re only paid the commission after the customer purchases the product or acquires the service as a result of your marketing efforts.

In this case, the commission is usually a percentage of the sale price of the product or service. Amazon is one of the platforms that follow this model, and that’s what makes its affiliate programs one of the largest and most competitive.

2. Pay Per Click

The pay-per-click payment model is a more lenient one. Here, you’re encouraged to redirect customers from your website to the merchant’s. Of course, to do so, your content must be really engaging to the extent that the visitor will move from one website to the other.

Once you successfully achieve that, you’re paid based on the increase in web traffic that results from your efforts. In other words, you’re paid for every click that redirects website visitors from your website to the merchant’s.

As you’d expect, the pay-per-click model is the most attractive model there is, but it isn’t the easiest to get your hands on.

3. Pay Per Lead

The pay-per-lead payment model is the most difficult in affiliate marketing programs. With this model, you’re ultimately commissioned based on the conversion of leads. You must not only persuade the consumers to visit the merchant’s website but also to complete their desired action.

That action could be filling in a contact form, subscribing to a newsletter, signing up for a trial version of a product, booking a consultation call, and similar. While it resembles the pay per sale model, it’s more challenging in that there’s a lot more work involved to actually promote the desired action since it’s more specific.

Final Words

As you choose the affiliate marketing programs to become a part of, always remember that the programs are only as good as their commissions and terms. After all, what’s the point of an affiliate program if you can’t implement it easily and hassle-free? Therefore, make sure to take your time to choose the right payment model that actually brings you a steady income.

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