What are Affiliate Commissions?
Affiliate commissions are not regular wages that you get paid with every paycheck but rather a bonus that gets paid to you when you meet these targets. To be more precise, an affiliate commission is a percentage that affiliates earn when they drive traffic or sales to advertisers’ products. Altogether at the end of the month, all commissions amount to a publisher’s salary. The average affiliate commission rate varies greatly depending on an affiliate vertical and a product type, but it is common for the commissions to vary between 5 and 30%.
You can set up your affiliate program with different types of commissions, but the bottom line is whether you pay for predetermined actions or you share a part of the derived revenue. To that end, affiliate commissions can be primarily divided into CPA, or cost per action, and RevShave (Revenue Share).
If you google what CPA stands for, you will always find two transcriptions: Cost-Per-Action and Cost-Per-Acquisition. Both of them are actively used in affiliate marketing. However, the baseline is Cost-Per-Action. Under the CPA scheme, affiliates agree to a fixed amount or percentage of an action defined in the affiliate program guidelines of a particular advertiser.
In comparison to CPA, the RevShare commission model implies sharing a percentage of the revenue brought by the paying visitors. The difference in the percentages paid under the CPA scheme is that in RevShare this payment doesn’t have a one-time nature. Under RevShare, affiliates can get a percentage from the buyers they brought during their entire lifetime.
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