How2MM – Learn How To Make Money Online

There are several commission types that you as an affiliate can choose to work with and earn money according to these commission types – I will review the most common commission types in this post.

Revenue Share:

One of the most popular commission type. In revenue share, you share the revenue of the client you brought to the affiliate program with them. The revenue share formula varies according to the product and the type of contract so be sure to read the terms and conditions but the general idea is this: You are set on a commission type of (for example) 20%, the sale is $100 you get $20 the affiliate program gets the rest. If the client makes another purchase of $100 you will get another $20, usually it’s for life time.

Please note that most of the affiliate programs will try to tempt you with a high offer of revenue sharing like 50% for the first month. Be sure to check what happens in the long run (after the first month) as revenue share is profitable in the long run and not in the short run.

CPA (Cost Per Acquisition)

You get paid a fixed payment for a client who made a purchase of the product. For example a client made a purchase (regardless of the price), you get $100 CPA. Since this is a one time fixed payment, you will not make any additional commission for that client if he makes reoccurring purchases.

Please note that once the affiliate program paid you your CPA commission they actually “bought” the client from you, unlike revenue share where you share the revenue from the client with the affiliate program.

CPL (Cost Per Lead)

Similar to CPA. The only difference is that the client doesn’t have to make a purchase, but needs to sign up in order for you to get a CPL commission. Usually the CPL commission is very low and varies between $0.50 – $10 .

Hybrid 

Hybrid commission is a combination of revenue share and CPA commission. You will receive a commission from the revenue of the client but you will also receive a CPA payment for the client. The CPA payment will be much lower than the one you will get if you work solely on CPA, but it’s still the best deal you can get since it combines revenue share as well.

CPC (Cost Per Click)

This commission type is more common with advertisements you place on your website or blog such as Google Adsense which was already mentioned in previous posts.

Payment for click on your ads varies according to the relevance of the advertisement to the page displayed.

CPM – Cost per 1000 impressions 

Similar to the CPC concept only you get paid a fixed price for 1000 viewers of an advertisement. No Click is needed.

This is a summary of all the popular commission types. In the long run, revenue share is better. In the short run the CPA is better. Think what’s best for you and choose. Don’t be afraid to negotiate a better deal with the affiliate program before you start promoting them.

I will discuss about the methods of promotions in Part 3 of Becoming an affiliate.

Good luck

Ben