The affiliate marketing is an excellent way to start your online activity. You can promote other people's products/services while earning money.
As an affiliate, you have the option to use different compensation models. MyLead has listed here some common affiliate models, with their advantages and disadvantages, as well as the factors to consider when choosing your compensation model.
CPA compensation: Cost Per Action
CPA compensation is the most popular and most advantageous payment model for advertisers.
CPA (Cost-Per-Action) is a payment model that allows the advertiser to pay only when users take a specific action, such as a purchase, a subscription, or a sign-up.
With this payment model, the advertiser's risk is reduced because they do not pay for "non-converting" traffic and can therefore increase their marketing budget. However, to ensure visitors complete the desired action, it is necessary to implement an effective web marketing strategy.
CPS compensation: Cost Per Sale
CPS (Cost Per Sale) is a popular payment model in the affiliate world. The advertiser pays a commission to the publisher for each sale generated.
The publisher can expect to receive a set amount of money for each action. For example, an advertiser pays $1 to the publisher for each sale generated by the publisher's website. This type of payment is called CPS "flat-rate" compensation.
An alternative is for the advertiser to set a commission percentage based on the sale price. For example, 10% of sales. In this case, it is called CPS "percentage-based" compensation. Compared to flat rates, percentage rates are often used for high-priced products (for example, cars).
CPL compensation: Cost Per Lead
The CPL (Cost Per Lead) payment model is paid for each contact you generate. This includes sign-ups to a newsletter or the filling out of a form on your site by a user. If the user registers on your site or requests more information, you are paid.
In other words, if your affiliate program offers a CPL payment model, you will be paid based on the number of contacts obtained thanks to your affiliates' actions.
In the pay-per-lead model, an advertiser only pays you for valid leads (such as sign-ups or contact form submissions). These leads are generally converted into sales by the company itself.
PPI compensation: Payment Per Installation
The PPI (Pay Per Install) model is based on a customer installing the software. The partner receives compensation for each installation of the advertiser's application. Advertisers promote mobile games, while partners must promote them to their audience and install them on new devices.
This affiliate marketing model is generally used in conjunction with other models. For example, a partner may be compensated not only for installing an app but also for the customer's future in-app purchases or ad views.
COD compensation: Cash on Delivery
This payment system is particularly suited to small shops or beginner e-commerce merchants. Indeed, it allows payment only upon receipt of the goods, which reassures customers when the store's reputation is not yet established.
Advertisers choosing COD payment are generally remunerated with a fixed amount after the customer pays the shipping costs.
SMS payouts
Affiliate SMS, or SSM, is one of the simplest forms of affiliation. The publisher (or affiliate) will promote a product or service by SMS to their customers.
The publisher can be paid in two ways:
- A paid SMS, in this case the fees are borne by the customer, and the publisher receives a commission on the sale;
- A free SMS sent by the advertiser to its subscribers, and in this case the advertiser pays a rate per SMS sent.
MyLead, the affiliate platform to monetize your site
The MyLead affiliate network is a market leader in the CPA segment. The platform offers ready-made solutions for both affiliates and advertisers, made available to them from the date of registration.
The main advantage of the network is that there is no entry threshold for new users. The service is completely free for publishers. They can choose from over 3,000 campaigns, many in the mobile segment, and continuously cooperate with advertisers from different countries. At the same time, MyLead works with partners worldwide and helps its clients find customers in every country with an Internet connection.
In addition to choosing the most profitable traffic source and applying MyLead's ready-made solutions, you can use your own ideas for how to attract customers. Feel free to ask for free help via chat to get started with affiliate marketing and monetize your site effectively!
