Affiliate marketing is internet advertising that allows any online business to affiliate themselves with web site owners (known as affiliates or publishers) using affiliate programs. Affiliates make money by generating sales, leads and traffic for the Merchants business. Merchants who sell goods and services online or seek other affiliate business activity typically use one of the affiliate program commission payment models below:
Cost Per Sale (CPA)
A visitor referred by the Affiliate purchases goods and services from the Merchant. This payment structure is referred to as – cost per sale or cost per acquisition (CPA).
Cost Per Lead (CPL)
A visitor referred by the Affiliate completes a form on the Merchants web site. This payment structure is referred to as – cost per lead (CPL).
Cost Per Click (CPC)
A visitor to the Affiliates web site clicks on a Merchant’s banner and visits the Merchant’s web site. This payment structure is referred to as – cost per click (CPC).