How to Choose the Best Affiliate Programs for Beginners

What Are the Most Common Payment Models in Affiliate Marketing?

The 5 Types of Compensation in Affiliate Marketing

1. Cost Per Click (CPC)

2. Double Click Payment

3. Cost Per Lead (CPL)

4. Opt-in and Double Opt-in

5. Cost Per Sale (CPA)

1. Cost Per Click (CPC)

Cost Per Click (CPC) is a payment model where the affiliate receives a fixed amount every time a visitor clicks on the advertiser's site via the affiliate's promotional efforts. If the affiliate uses an ad format, the affiliate earns the predefined amount per click, multiplied by the number of clicks recorded on the ad. The advertiser pays the affiliate for the visibility provided.

This compensation method is particularly effective for websites with high and consistent traffic or those with potential for high traffic and a desire to increase it. CPC works well in online advertising campaigns where the goals are to increase page views or overall website traffic.

However, CPC has a limitation: it can result in unqualified clicks, leading to a high bounce rate, which could negatively impact campaign statistics.

2. Double Click Payment

To address the limitation of CPC, the double-click payment method has developed and is increasingly replacing traditional CPC. It adds a level of control over user engagement with the ad. The double click is verified as follows: the visitor clicks once on the ad, then clicks again on the advertiser’s site.

The affiliate is compensated only after the second click, making this method more secure and reducing fraudulent clicks from affiliates.

3. Cost Per Lead (CPL)

Cost Per Lead (CPL) is a payment model where the affiliate is paid whenever a user takes a specific engaging action. These actions can include:

• Filling out a form.

• Requesting a quote.

• Booking an appointment on the advertiser’s site.

These actions are significant indicators of a prospect's engagement level. Once a user completes one of these actions, they are considered a lead—a potential customer. The advertiser can compensate affiliates with less risk than with CPC, as they gain a qualified lead, even if the prospect hasn't yet made a purchase.

CPL is ideal for advertisers in industries (such as real estate or automotive) where the purchasing decision involves a higher budget and requires research and evaluation. In other words, it's suited for "considered purchases."

For companies that require a contractual commitment from their customers, CPL works well. Affiliates earn regular commissions without the need for a direct sale, while the advertiser builds a database of qualified leads.

4. Opt-in and Double Opt-in

In Single Opt-In (SOI), the affiliate process is validated when the user fills out a specific form. However, in Double Opt-In (DOI), the process is only confirmed if the user performs a second confirmation action after filling out the initial form. For example: clicking on a link sent via email.

5. Cost Per Sale (CPA)

Cost Per Sale (CPA) is the most commonly used payment model in affiliate marketing. It involves paying affiliates a commission based on the sales generated by the advertiser through the affiliate’s efforts. The commission rate can vary depending on the type of products or services sold, as well as the affiliate program offered by the advertiser. Affiliates must know the commission rate before joining an affiliate program. For example, HubSpot offers a 30% commission on the sale of its software.

Why is Cost Per Sale so widespread in affiliate marketing? The reason is simple: it’s a flexible payment method that adapts to all types of products and various e-commerce marketing strategies. For content creators looking to try affiliate marketing, CPA is the payment model to focus on when starting.

It provides a fast return on investment, proportional to the effort invested. Affiliate marketing can even become a supplemental income source for professionals working online.