Website affiliate programs pay affiliates to drive traffic to a website. The most common method is cost per sale, but cost per action and cost per click are also used. Affiliates receive a commission for traffic sent to the website, without having to sell a product.
Website affiliate programs allow merchants to pay affiliates to drive traffic to a particular website. There are several ways to compensate your affiliate website or blog, with the most common method being cost per sale. This rewards the affiliate a percentage of every sale they make. Cost per action affiliate programs, on the other hand, pay the affiliate for certain actions such as signing up for a free trial or account. The least common type is cost per click, which pays the affiliate based on the visitor.
All types of website affiliate programs are built on the same basic principles regardless of the compensation method. A website with an affiliate program offers to pay an affiliate for traffic sent to that website, whether through the affiliate’s website or some other method. The advantage is that the website merchant receives traffic without having to generate it directly, and the affiliate can make money without selling a product or service himself.
Cost per sale (CPS) is the most common type of website affiliate programs. With this compensation method, the affiliate receives a commission for each item purchased by the affiliate’s web visitors. For physical products, the commission rate is often between 5-20% depending on the affiliate program. The commission on digital products, such as eBooks, can be much higher.
The cost per action of website affiliate programs is similar to CPS, but the affiliate is paid when the visitor completes an action rather than purchasing a product. It could be registering an account or entering an email address. The payout for the cost-per-action affiliate commission is often a fixed amount rather than a percentage. Many affiliates prefer the cost per action of website affiliate programs over the cost per sale because it is often easier to get a visitor to create a free account than it is to make a purchase.
A less common type of affiliate program is cost per click. With this type of program, the affiliate gets paid for every visitor sent to the merchant’s website, regardless of how many buy a product or complete an action. The value of each click usually depends on the value of visitors in a particular market and the quality of the traffic. Traffic quality varies depending on the traffic source and the likelihood that visitors are interested in the website’s products.
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