Payment models

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Reddi2
Posts: 45
Joined: Sat Dec 28, 2024 3:16 am

Payment models

Post by Reddi2 »

CPL (Cost Per Lead)
CPL (Cost Per Lead) is a model where partners are paid a reward for each lead they bring in. For example, if a person follows a blogger's link and makes an application from it, the partner is entitled to the agreed reward.

Let's say a person blogs about technology and programming. He registers in the affiliate program of a special platform or enters into a cooperation agreement with a company. Then he receives unique referral links to purchase business products, which he places in his articles or videos.

Interested blog readers follow the links, leave a request and their contact information, and the blogger receives a fixed amount of remuneration.

CPA (Cost Per Action)
CPA (Cost Per Action) – payment for each action, such as types of nurse databases a purchase, registration or subscription. This model allows companies to control their expenses and pay only for specific results.

Our technology blogger, in addition to articles, also makes video reviews and, as a partner, makes a release about a new smartphone model that the company sells. In the description, he inserts a link to purchase the product. Then the business can track the number of clicks, product page views, purchases, adding to cart or favorites.

CPS (Cost Per Sale) and PPS (Pay Per Sale)
CPS (Cost Per Sale) or PPS (Pay Per Sale) – partners are paid a commission for each completed sale. This method encourages them to actively promote products, as income directly depends on the number of sales.

Let's assume that after a blogger's video review of a new gadget, 10 people followed the link and bought the product. Then, in the case of the CPS payment model, the partner will receive a reward in the amount of, for example, 10% commission from the cost of the sold product.
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