What do the commission models look like in affiliate marketing?
How much money can one make as an affiliate in affiliate marketing?
There are several types of commission models in affiliate marketing, such as:
Cost Per Sale (CPS):
In this model, the company pays a fixed percentage of each sale to affiliates who have contributed to the sale. For example, the company might offer a commission of 10% on each sold product.
Cost Per Action (CPA):
In this model, the company pays affiliates for each desired action taken by visitors, such as creating an account, leaving an email address, or filling out a form. CPA commissions can range from a few cents to hundreds of dollars depending on the action and the company.
Cost Per Click (CPC):
In this model, the company pays affiliates for each click on an affiliate link, regardless of whether it leads to a sale or not. CPC commissions typically range from a few cents to a few dollars.
Lifetime Value (LTV):
In this model, the company pays a fixed percentage of the total sales from a customer over a longer period of time, typically several months or years. LTV commissions can range from 5% to 20% depending on the company.
It's important to note that the exact percentages and figures can vary depending on the company and industry, so it's important to understand which commission models are common in your niche and compare different options to find the one that best fits your company and needs."