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- Affiliate Program Commission Models: Types and How They Work
Affiliate Program Commission Models: Types and How They Work
Today, there are many affiliate marketing business models, allowing marketing experts to choose the most suitable and profitable one according to the market and the traffic on their resources. Slotegrator suggests looking at the types of business models that affiliate marketers use.
Common Affiliate Program Models
1. Pay per click (PPC)
Affiliate programs with the PPC commission model offer rewards to affiliates each time a user clicks the affiliate link. In this case, the rewards are usually not very high, as not all users that follow the link stay on the website. Many users leave the website without paying for anything or contributing to the website, so the PPC model is not the most profitable for affiliates.
2. Cost per view (CPV)
Affiliate programs with the CPV model pay rewards every time users see the ad placed on the affiliate’s resource. The payouts are minimal because, despite the fact that showing ads is important, it can be annoying to some users, so this marketing strategy is not always perfectly effective. Apart from that, the CPV model can be effective and profitable if the affiliate has a high volume of daily traffic, ensuring that many users visit the website.
3. Cost per action (CPA)
Affiliate programs with the CPA model offer rewards when the user that was brought to the website by the affiliate fulfills some action. Actions can include registering, commenting, leaving feedback, downloading something, or subscribing. If the new user leaves the website without performing any of the necessary actions, the affiliate doesn’t get a reward.
4. Pay per sale (PPS)
Affiliate programs that are based on the PPS model reward affiliates if users brought to the website buy the advertised product or solution. The PPS model is the most profitable affiliate program, paying out the largest rewards.
Do not miss: How to Create an Affiliate Program for Your Casino?
Affiliate Program Models Popular in Gambling
1. Revenue Share
Revenue Share is one of the most well-known commission models in the gambling industry. In this model, affiliates earn a percentage of the lifetime profit that the player they brought in generates for the casino. Affiliates are paid an agreed-upon percentage of the NGR the casino earns from the player. In most cases, this is 15-40%. If a casino has a well-thought-out retention technique that keeps the player on the website and brings in high profits, the affiliate has a chance to get lifetime benefits.
2. Cost Per Acquisition (CPA)
Affiliate programs with the CPA model are the most popular choice among affiliates that promote online casinos. In this case, affiliates get paid for each new depositing player after he has played through the amount deposited.
This model is better for affiliates who know they can redirect many users to the casino website but are not sure about the lifetime value of the players they bring in. Using the CPA model, the affiliate’s income is more consistent, as it doesn’t depend on the amounts that the players deposit, only on the number of players directed to the website.
Read more: CPA Affiliate Networks for Online Casinos
Today, many affiliate programs also offer alternative types of commission models - hybrids. They are a mix between CPA and Revenue Share, but they usually pay less than the original standard offers.
These commission models can be good for inexperienced affiliates, helping them to decide which type would be the most profitable.
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