Affiliation is an essential lever of digital marketing , too often underestimated. Indeed, affiliation, which today holds a place of choice in the digital advertising world, is a performance marketing solution. This means, in other words, that an advertiser pays his affiliate according to the results of the latter.
Thus, you understand that, to make a success of your affiliation campaign , it is very important to know well the methods of remuneration related to this system.
We tell you everything.
Payment method CPC (Cost per Click)
The CPC is, without question, the compensation model the most known. It is, in fact, the easiest to quantify. Provided you have implemented high-performance tracking software (this is also the basis of a affiliate program ).
The principle of CPC affiliation is simple: once the advertising is in place, the affiliate is paid for each click. This can be as much a link in textual content as a banner.
As a general rule, this type of remuneration is used as part of a strategy to gain visibility and generate traffic by using sites as partners that have an audience in affinity with that of the advertiser.
Remuneration method CPA (Cost per Action)
Another very popular method of remuneration: CPA remuneration. Here, the click is not enough. The affiliate is, in fact, paid for each sale of product that he generates (percentage on sales or fixed amount defined in agreement with the advertiser before the launch of his affiliate campaign).
As a result, you understand that the CPA type of remuneration is very popular with e-commerce sites.
Note: the CPA is by default the commission of all affiliates connected to a campaign using this compensation model.
Remuneration method CPL (Cost per Lead)
Derived from CPA, a CPL Affiliate Program uses the same principle. That being said, here, it is not the sales that are taken into account, but the lead. Consider the action performed by an Internet user. This can be a request for an appointment or quote, registration for a newsletter or a form. In fact, all acts directly engaging the prospect.
This compensation model is generally used for sectors of activity where the purchasing process is particularly long. This is the case, for example, of real estate, building (works) or automobiles.
The objective is not to sell immediately, but rather to build up a database of new prospects.
Remuneration method CPM (Cost per Mile)
In addition to the 3 payment methods mentioned above, there are others which are less used, but which are still interesting to know.
CPM is one of them. Less popular than the CPC or CPA in affiliation (or almost non-existent), it is mainly used to work on branding and visibility on quality media sites. On the other hand, it is the remuneration most used in RTB / Programmatic.
Note: to avoid wasting money, we advise you to set up personas for your targets and to choose your partner sites carefully (preferably specialized ones).
Remuneration method CPI (Cost per Integration)
With the arrival of the RSS feed and widgets, a new method of remuneration has emerged: the CPI. The principle is the same as for CPL. That said, this only concerns the subscription to a site’s RSS feed or the integration of a widget.
So you understand that this is a very specific compensation model.
Payment method CPD (Cost per Download)
Another very specific mode of remuneration: the CPD. Like the CPI or the CPL, the remuneration will be made here with each download of an application.
With the emergence of smartphones and m-commerce, it is an increasingly used remuneration model.
Remuneration method RS (Revenue Share)
Revenue Share is a remuneration model that mainly concerns online gambling sites. Here, the affiliate receives a commission corresponding to a percentage of what the Internet user he brought to the site will spend there.
Often compared to the CPA, the RS in affiliation is a model that allows the affiliate to generate income over the long term. It is for this reason that it is used for poker sites, for example. That being said, it can also be used for sites selling expensive items (sofas or luxury clothes, for example).
Compensation and affiliation: what you need to know to create successful campaigns
While an affiliate is looking for the most interesting method of remuneration for him, an advertiser, on the other hand, is interested in the ROI of his campaign and, therefore, in the difference between what he pays and what it earns him. The most important thing is to succeed in setting up quality partnerships based on a win/win model.
This is the role of an affiliate platform such as ours.
Indeed, at Casaneo, we have chosen to specialize in the fashion and home sectors. This has allowed us to develop real expertise in these sectors and therefore to offer our users the most suitable and efficient remuneration models (with, for example, an attractive percentage of remuneration for affiliates).
Thus, in addition to the creation of a highly qualified affinity network, we have also set up a powerful tracking tool guaranteeing optimal traceability of campaign operations by informing advertisers of each sale or lead generated by an affiliate. And, this, regardless of the method of remuneration chosen.
As an advisor, we help you activate the best compensation models (CPC, CPA, CPL or even hybrid program). Because, indeed, it should be known that the methods of remuneration are not fixed. For example, you can use together in a affiliate program CPA and CPC compensation. The first will be linked to a strategy to increase sales while the second will aim to increase the traffic of your site and thereby your visibility.
Everything is possible in affiliate marketing. You ask yourself how to activate an effective affiliate program? We are at your disposal to support and advise you, whether you are an advertiser or a publisher site.
To find out more, feel free to download our Affiliate Marketing guide .