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What Are The Different Compensation Models Of Affiliate Marketing?

April 26, 2017affiliate marketing compensation different models

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What Are The Different Compensation Models Of Affiliate Marketing?

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Over the years affiliate marketing has evolved to be internet’s most dominating promotion method. There are four main types of compensation models applicable to affiliate marketing. These are as follows. Pay-Per-Impression (PPI): In the pay per impression (also known as the cost per mil (CPM) model) the affiliate is paid an x amount of money for every 1000 impressions. An impression means that a particular ad was displayed. The ad can be in the form of text, banner or media clip. Pay-Per-Click (PPC) In pay per click model (also known as the cost per click (CPC) model) the affiliate is paid an x amount of money each time the merchant’s advertisement is clicked. Under this model the number of impressions returned is irrelevant. This model was popular during the early stages of e-business development. However, it was later abandoned by merchants due to click frauds. Pay-Per-Lead (PPL) This model is also know and cost-per-acquisition (CPA) or cost-per-lead (CPL). In this model the affiliat