Affiliate payment structures or compensation models

There are many affiliate payment structures with multiple abbreviations for each;

Revenue Sharing; this is the most common payment structure in the affiliate market. Most New Zealand affiliate programs also use this structure. Here the affiliate receives a percentage of the revenue which is generated from traffic they have sent to the website. The levels can range anywhere from a few percent up to 50 percent depending on the online industry the affiliate is working, how much traffic they can send through and how good their negotiating skills are.

PPC; Pay-per-click is the method of choice for programs such as Google Adsense and most other search generated programs.

CPA / CPL; Cost-per-acquisition / Cost-per-lead are more common for high level affiliates who have been working with an affiliate program for some time and have shown the value of their traffic. If an affiliate program is offering CPA / CPL as an initial payment structure it will usually mean the level is reasonably low and would only be raised with proven traffic.

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