How Pricing and Payment works
There are a number of pricing models which are used in affiliate marketing which vary between networks and advertisers. Payments are made monthly once a set amount is reached.
Pay-Per Sale - Payment is made through a commission from the sale of a product or use of a service. Payments will not be made if a user clicks on a link; affiliates will receive commission payment if a user who clicks is converted to an
acquisition.
Tiered Commission - In this case merchants adjust commission based on how well the affiliate performs for them. This can be based on total sales or on a sales per month basis.
Pay-Per Lead - Some merchants will offer a fixed fee when a user signs up to a service such as a daily newsletter.
Combined Pricing Structures - Sometimes a commission is paid in combination with a 'bonus' payment for a first time customer or a sign up to a news letter. Some offer an option to receive payment based on either cost per sale or on a percentage commission basis.
Pay-Per Click - Many networks operate on a pay per click model where affiliates are paid for each visitor originating from their site. Clicks will receive revenue regardless of an eventual sale but the amount paid per click will be far lower than an equivalent click that is converted to a sale (pay per sale).
