Affiliate programs are marketing strategies in which members are rewarded for referring customers to a business. The affiliate member earns a commission for each customer that purchases a product or service from the business. Businesses use affiliate programs to incentivize and reward loyal customers or to boost their online visibility and attract new customers.
Affiliate Program Types
Affiliate programs are a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts. The most common types of affiliate programs are:
1. Pay-Per-Click (PPC): This type of program rewards affiliates for each click on an affiliate link. The amount of the commission is usually determined by the cost-per-click (CPC) rate.
2. Pay-Per-Lead (PPL): This program rewards affiliates for each lead, such as a customer signing up for a newsletter or making a purchase.
3. Pay-Per-Sale (PPS): This program rewards affiliates whenever a customer makes a purchase. Affiliates typically receive a percentage of the sale price as their commission.
4. Cost-Per-Action (CPA): This program rewards affiliates for each action taken by a visitor, such as signing up for a newsletter or completing a survey.
5. Cost-Per-Thousand-Impressions (CPM): This program rewards affiliates for each thousand visitors sent to the affiliate’s website.
