A corporation (the merchant) will pay a fee to a third party (the affiliate) for bringing visitors or sales to their website through the performance-based marketing technique known as affiliate marketing. The affiliate uses their own marketing techniques to advertise the merchant's goods or services, such as by writing blog posts, running advertisements, or passing along product recommendations to their followers.
1. EPC (Earnings per click) is a metric that assesses how much money affiliates typically make from each click on their affiliate links. It is determined by dividing the entire commission received by the overall click-through rate.
2. In a CPC (Cost per click) affiliate programs, regardless of whether a click leads to a sale or not, affiliates are compensated for each click they create on an affiliate link. Merchants who wish to boost traffic to their website or landing pages frequently employ CPC programs.
3. CPA (Cost per action): This kind of affiliate scheme pays commissions to affiliates when a particular activity is carried out by the user they referred. This might be a download, a sale, a lead, or any other pre-determined action that the merchant wants to reward.
4. Affiliates participating in CPS (Cost per Sale) programs receive a commission for each sale made through their affiliate links. CPS programs are the most popular kind of affiliate program, and they are utilized by businesses that sell services, digital items, and physical goods.
5. For each thousand ad impressions produced by an affiliate link using a CPM (Cost per Thousand Impressions) affiliate network, the affiliate receives a commission. Campaigns for display advertising that aim to broaden brand recognition and reach frequently use CPM programs.