What are the different types Affiliate Marketing Payment Models? Skip to content
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What are the different types Affiliate Marketing Payment Models? 100 Deals

What are the different types Affiliate Marketing Payment Models?

Affiliate marketing payment models determine how affiliates are compensated for their promotional efforts.

Here are the most common types of payment models in affiliate marketing:

  1. Pay-Per-Sale (PPS): Pay-Per-Sale is the most popular payment model in affiliate marketing. Affiliates earn a commission when a referred customer makes a purchase on the merchant's website. The commission is usually a percentage of the sale value and can range from a few percent to a significant portion of the sale price.

  2. Pay-Per-Lead (PPL): In the Pay-Per-Lead model, affiliates are paid a commission when they refer a visitor who completes a specific action on the merchant's website, typically filling out a form or providing contact information. The action is usually related to generating a lead, such as signing up for a free trial, subscribing to a newsletter, or completing a survey.

  3. Pay-Per-Click (PPC): Pay-Per-Click is a payment model where affiliates earn a commission for each click their referral generates on the merchant's website. The commission is not based on a sale or lead; it is solely tied to the number of clicks. This model is less common in affiliate marketing, but it can be beneficial for certain types of affiliate campaigns, such as driving traffic to a website or increasing brand visibility.

  4. Pay-Per-Call (PPCall): Pay-Per-Call is a payment model commonly used in industries that rely on phone leads, such as insurance or financial services. Affiliates receive a commission when their referral makes a phone call to the merchant's designated phone number. This model is particularly useful for businesses that prefer to engage with potential customers directly over the phone.

  5. Pay-Per-Install (PPI): Pay-Per-Install is a payment model prevalent in the software or mobile app industry. Affiliates earn a commission when their referral downloads and installs the merchant's software or mobile app. This model is well-suited for businesses looking to drive app installations or software adoption.

  6. Pay-Per-View (PPV): Pay-Per-View is a payment model commonly used in online advertising campaigns, particularly for video ads. Affiliates receive a commission based on the number of times an ad is viewed by their referrals. This model is typically used in conjunction with ad networks or platforms that provide video content.

It's important to note that the specific terms and conditions, commission rates, and payment schedules may vary between affiliate programs and merchants. Before engaging in any affiliate marketing program, it's crucial to review the payment model details and understand the specifics of the arrangement to ensure a mutually beneficial partnership.

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