Affiliate Marketing: What Modes of Compensation?

Affiliation is a principle as old as commerce. This is based on a remuneration offered by a merchant to a business reporter, for each customer brought into his shop. In the digital world, affiliate marketing involves paying an affiliate each time it brings business to an advertiser. If the principle is simple, the modes of remuneration differ and often appear complex. Here are, in a few lines, the main methods of remuneration of affiliate marketing, explained simply.

The main modes of remuneration of affiliate marketing and other CPC, CPL, CPA …

Cost Per Click, Pay Per Click

This is the payment model adopted by AdWords, it is also the best known. In this mode of remuneration, the affiliate receives a fixed sum each time he brings a visitor to the advertiser’s site. This mode of remuneration is suitable for sites with a traffic objective and number of page views, those who derive their revenues from advertising for example, such as the media. It is a mode of remuneration not adapted to the e-commerce, for which the payment with the action (CPA) seems much more adapted.

Double click payment

Variant Cost Per Click, the double-click payment replaces it more and more. This model has been adopted to combat fraud and rule out payment for unskilled clicks, resulting in a high bounce rate. In the case of a double-click pay, after having made a first click on the advertising medium, the visitor must make at least another click on the advertiser’s site for the affiliate to receive his remuneration.

Cost Per Lead (CPL), qualified contact payment

The payment is triggered for each qualified contact, that is to say a visitor who has completed the action that was expected of him (fill out a form, leave his email address, make an appointment, etc.). This method of remuneration is adapted to sites offering products whose sale is not immediate (real estate, automobile, etc.). These can be large purchases, requiring a long cooling-off period, or products whose sale is linked to the signing of a contract (insurance, online courses, financial products, etc.). This method of remuneration is particularly suitable for sites seeking to build a file of prospects.

Cost Per Action (CPA), the payment on sale

This is the most used method of payment, and especially by e-commerce: the affiliate earns a commission on sales made through it. Compensation varies a lot, depending on the products and sites.

There is not an ideal payment method for affiliate marketing. It is primarily determined by the activity of each company and the objectives. It is always possible to imagine new ones, nothing is fixed, everything remains to be invented!