When it comes to affiliate marketing, different pricing models determine what action triggers a payout, how much you can earn, and what advertisers are looking for from their campaigns.
For affiliates, understanding these models makes it easier to choose offers that fit your traffic, your audience and your strategy.
The pricing models you’ll commonly come across are CPA (Cost Per Action), CPS (Cost Per Sale), CPI (Cost Per Install), CPL (Cost Per Lead) and RevShare (Revenue Share). While they all work a little differently, the basic idea is the same: publishers earn based on a specific result generated through their traffic.
CPA: Cost Per Action
CPA, or Cost Per Action, is one of the most popular pricing models. CPA offers pays publishers a set amount when a user completes a specific action.
What that action needs to be will vary depending on the offer. It can be something as simple as submitting a form or signing up for a service. Affiliates get paid when the defined action is completed, as long as the conversion meets the offer’s requirements.
How CPA campaigns work
CPA campaigns typically follow a straightforward process:
- An affiliate promotes an offer to their audience.
- A user clicks the link.
- The user completes the required action.
- The affiliate receives the specified payout.
Common CPA Actions
Depending on the offer, a qualifying CPA action could include:
- Lead submissions: A user provides their information through a lead form.
- Form completions: A user completes and submits a specified form, such as a mortgage pre-approval application.
- Sign ups: A user creates an account or signs up for a service.
- Registrations: A user registers for a platform, event, or service, such as signing up for an online conference.
- Free trials: A user starts a qualifying free trial.
Example CPA calculation
If a CPA offer pays $20 per conversion and you generate 50 conversions:
50 × $20 = $1,000
The affiliate will earn 1,000 in earnings.
CPS: Cost Per Sale
CPS, or Cost Per Sale, is where you earn a commission when your traffic leads to a qualifying sale.
Unlike CPA campaigns that can pay for actions such as registrations or lead submissions, CPS campaigns require the customer to complete a purchase. The affiliate’s earnings can be a fixed amount per sale or a percentage of the sale, depending on how the offer is structured.
How CPS campaigns work
A typical CPS campaign works like this:
- An affiliate promotes a product or service.
- A user clicks the link.
- The user makes a purchase.
- The affiliate receives their commission.
Example CPS calculation
If a CPS offer pays 10% commission on each qualifying sale and an affiliate generates 25 qualifying sales worth $100 each:
25 × $10 = $250
The publisher would earn $250 in commissions.
CPI: Cost Per Install
CPI, or Cost Per Install, is a model where publishers earn a set payout when a user installs a qualifying app or software after clicking their tracking link.
CPI campaigns are commonly used for mobile apps, games, and software products. The specific requirements for a qualifying install can vary by offer. Some campaigns may require the user to simply install the app, while others may require additional steps, such as opening the app or completing an initial action.
How CPI campaigns work
A typical CPI campaign works like this:
- A publisher promotes an app or software to their audience.
- A user clicks the tracking link and installs the app or software.
- The affiliate receives the specified payout.
Common CPI Actions
Depending on the offer, a qualifying CPI action could include:
- App installs: A user downloads and installs a mobile app through the publisher’s tracking link.
- Game installs: A user installs a qualifying mobile or desktop game.
- Software installs: A user downloads and installs a software product or application.
Example CPI calculation
If a CPI offer pays $3 for each qualifying install and a publisher generates 100 qualifying installs:
100 × $3 = $300
The affiliate would earn $300.
CPL: Cost Per Lead
CPL, or Cost Per Lead, allows affiliates earn a set payout when they generate a qualifying lead for an advertiser.
A lead is typically a potential customer who provides information requested by the advertiser, such as their name, email address, phone number, or other details. Depending on the offer, additional requirements may apply before the lead qualifies for a payout.
CPL campaigns are common in industries such as insurance, finance, education, and home services, where advertisers are looking to connect with potential customers rather than generate an immediate purchase.
How CPL campaigns work
A typical CPL campaign works like this:
- An affiliate promotes the offer to their audience.
- A user clicks the link and submits their information through the lead form.
- The affiliate receives the specified payout.
Common CPL Actions
Depending on the offer, a qualifying CPL action could include:
- Quote requests: A user submits their information to request a quote, such as an insurance or home services quote.
- Lead form submissions: A user completes and submits a form with their contact information.
- Contact requests: A user provides their details to request information or speak with an advertiser.
- Application submissions: A user submits an application for a financial, educational, or other service.
Example CPL calculation
If a CPL offer pays $8 for each qualifying lead and a publisher generates 50 qualifying leads:
50 × $8 = $400
The affiliate would earn $400 from those leads.
RevShare: Revenue Share
RevShare is a pricing model where publishers earn a percentage of the revenue generated by the customers they refer.
Instead of receiving a fixed payout for a single conversion, the publisher earns a portion of the revenue the advertiser generates from that customer. The percentage and how long the publisher can earn from a customer depend on the specific offer terms.
How recurring commissions work
One of the main advantages of RevShare is that commissions can be recurring. When a referred customer continues to make qualifying purchases or generate revenue, the publisher may continue earning a percentage.
For example, an affiliate promotes a subscription service with a 20% RevShare. If a customer pays $50 per month, the publisher earns $10 for that month. If the customer continues their subscription and the offer provides recurring commissions, the publisher can continue earning $10 each month the customer remains active.
This can make RevShare particularly appealing for offers with ongoing or subscription-based revenue, since one customer can generate multiple payouts over time.
Example RevShare calculation
Let’s say a RevShare offer pays 20% of qualifying customer revenue.
A publisher refers a customer who generates $100 in revenue:
$100 × 20% = $20
The publisher earns $20 from that customer.
If the same customer generates another $100 in qualifying revenue the following month, the publisher could earn another $20.
The key differentiator is that RevShare can continue generating commissions as long as the referred customer continues to produce qualifying revenue under the offer’s terms.
Hybrid Models
Hybrid models combine two or more pricing models. For example, an affiliate might earn a commission off of a click (CPC) and then additionally earn a commission if that user makes a purchase (CPS) or a recurring revenue share (RevShare). Depending on the offer, the upfront payout may be lower, but these models offer flexibility that can be appealing for affiliates looking for short and long term revenue.
Which model should I use?
There’s no pricing model that’s better or worse. The right choice ultimately comes down to your audience, traffic source as well as the type of action your audience are most likely to take.
If your audience is likely to submit a form or sign up for a service, CPA or CPL offers may be a good fit. If your traffic is focused on mobile apps or games, CPI could be worth exploring. If your audience is ready to make a purchase, CPS offers might be more relevant. However, if you’re promoting a subscription service or another offer with recurring revenue, RevShare can help you earn from customers compounded over time.
Start by looking at the offers available to you, then compare the payout, conversion requirements and how well each one matches your traffic. The goal is to choose an offer with a model that fits your audience and gives you a realistic path to generating conversions.
If you’re ready to grow your earnings faster, sign up as a MaxBounty affiliate and opt in to the New Affiliate Performance Bonus through your MaxBounty Affiliate Dashboard. From there, you can start building campaigns that can earn you up to $10,000 in bonus rewards.
You can also check out our Application Guide for helpful tips on how to get approved and start promoting offers.
FAQ
What is the difference between CPA, CPS, CPI, CPL, and RevShare?
The main difference is what action triggers the payout. Each model pays affiliates based on a different action the user takes.
Is CPA the same as CPL?
CPL is specifically focused on generating leads while CPA is a broader model that can include different types of actions, like registrations, sign ups, trials, etc.
Can I earn recurring commissions with RevShare?
If an offer includes recurring RevShare, you can continue earning a percentage of qualifying revenue generated by a customer you referred. The duration and terms vary by offer and not all RevShare offers have this option.
Can one offer use more than one pricing model?
Yes, some offers use hybrid models that combine different payout structures. The exact structure depends on the offer.
Which pricing model pays the most?
There isn’t one pricing model that consistently pays more than the others. Payouts depend on the individual offer, conversion requirements, traffic quality and other terms. It’s also important to keep in mind that a higher payout per conversion doesn’t necessarily mean higher overall earnings if the action is more difficult for your audience to complete.
The post The Complete Guide to Pricing Models for Affiliates appeared first on MaxBounty+.
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