There are several payment models when utilizing affiliate marketing programs, and some of them are: pay-per-click, pay-per-lead, pay-per-sales, and pay-per-calls. Pay-per-sale, for instance, is when you pay your affiliate partners a percentage of the total sales amount. Many big corporations utilize this method, one being Walmart. Pay-per-lead is when your partners are able to convince an individual to actually sign up for a service related to your business such as a free-trial, and they get paid upon the conversion.
- When devising your affiliate payment model, the key is to pick the action for which you want to reward your affiliates.
- There are four main activities for which you can financially reward your affiliates, including calls, clicks, leads and sales.
- The pay per sale option involves paying your affiliate a specified percentage of each sale generated by their efforts.
“Affiliate marketing payment methods constitute one of most important aspects you need to sort out before launching your affiliate program.”