What is a Commission Type
in Affiliate Marketing?

An affiliate commission model is a structure according to which affiliate marketers receive their money when promoting offers. Typically, the type of commission is determined by the advertisers. They specify it in the description of the offer, and later check whether the traffic corresponds to this model and pay money to affiliates on the basis of such data.

There are several types of CPA commissions in affiliate marketing. They depend on the actions performed by users. For example, CPS is sales and CPC is clicks. And affiliate networks are divided into types according to these structures: CPA networks, CPC networks, CPS networks, and others.

Types of Commissions in CPA Affiliate Marketing

Here you can find the list of the most popular CPA commission types that are used by advertisers and affiliate networks.

1. CPA

CPA means Cost per Action (Acquisition). In CPA marketing, affiliates get paid when users perform diverse actions like filling out forms, sign-ups, app downloading, games or VPN installations, code entries, purchasing.

The actions required by CPA offers are often more valuable to marketers as their commission rates tend to be higher compared to other models. This setup is also beneficial for affiliates, as they can earn commissions without having to generate a sale or lead, making it simpler than many other commission structures.

2. CPC

CPC is the Cost per Click affiliate commission model. Advertisers pay for each click on their ads. This means every time a user clicks on an ad, the affiliate is paid, regardless of whether the user buys or takes any further action.

Since clicks are much simpler than making a purchase or filling out a form, the commission rate for CPC is generally lower than that for CPA and CPS.

3. CPL

CPL stands for Cost per Lead. This is a commission type where affiliates earn a commission for generating leads for an advertiser. A lead is a potential customer, in other words it’s a person who might be interested in a product or service and has shared the contact information so the advertiser can reach out to the customer later.

Leads are crucial in marketing and sales because they represent people or companies that could eventually become paying customers.

4. CPS

CPS, or Cost per Sale, is an affiliate marketing commission type where affiliates get paid based on the sales they generate for an advertiser. In this model, affiliates get a percentage of the sale price or a fixed amount for each sale made by their target audience.

CPS  commission model provides clear metrics. Both affiliates and advertisers can easily check the conversions by sales numbers. So, marketers’ payouts are based on real sales results.

5. CPI

CPI is Cost Per Install. It means that affiliates get paid when a user installs an app through their affiliate link. So, advertisers only pay for actual installs, and this model helps them manage their budgets better.

Since the goal is clear — get users to install the app — CPI campaigns can lead to higher conversion rates than other models. What is more, this model is popular in the mobile app industry where user acquisition is key to growth.

6. CPM

CPM stands for Cost Per Mille, and mille means thousand. That’s why advertisers pay a fixed amount for every 1,000 times their ad is displayed.

One of the advantages of this commission type is that advertisers are charged based on how many times their ad is shown, regardless of whether the user clicks on it or not. CPM is used for campaigns that aim to build brand awareness, so businesses can reach a large audience without focusing on immediate sales.

7. RevShare

Revenue Share is usually used in its short form known as RevShare. It is a commission structure where affiliates earn a percentage of the revenue generated from customer purchases. The remuneration is usually between 5% and 50%, but it can be higher — up to 90%.

Unlike the CPA payment model, RevShare doesn’t have fixed payouts. Affiliates and advertisers negotiate the percentage they’ll earn. One important thing to keep in mind is that while RevShare can make you a lot of money it takes time to build up to significant income as the model gets more effective over time.

For example if you’re promoting an eCommerce product with a 30% RevShare commission and a customer you referred buys a $100 product you’ll earn $30 from that sale.

8. Hybrid

The Hybrid commission model combines different commission types, usually CPA commission type and RevShare. This way affiliates can earn a one time payment for specific actions like generating leads or making sales and ongoing commissions based on the revenue those customers generate.

For instance, if you’re promoting a subscription service, you might earn $20 per new subscriber (CPA) and 10% of the monthly subscription fee as long as the customer stays subscribed (RevShare). This way you get paid for acquiring new customers and for keeping those relationships going.

Affiliate Commission Models in CPA networks: final thoughts

So, understanding the different commission types in affiliate marketing is important for both affiliates and advertisers. Each model (CPA, CPC, CPL, CPS, CPI, CPM, RevShare, Hybrid) has its own strengths and is suited to different marketing goals.

Affiliates can choose a CPA affiliate network and earn commissions based on the actions they can drive. Or they can choose CPS networks and make money encouraging users to make a purchase.

With AffRoom, you can find affiliate networks that cater to all your needs!