Affiliate marketing is becoming one of the most popular side hustles, as well as business ideas for many people looking for a unique career path. If you play your cards right, you can earn a healthy income pretty fast after becoming a part of the industry. In fact, most affiliate programs are free to join. You can launch your business as soon as you put your mind to it without worrying about the high startup costs in almost any other sector.
So, how will you earn money through affiliate links? The answer to that question depends on the affiliate marketing revenue model you accept. Let’s take a closer look at some of the most popular models and better familiarize ourselves with their specifications.
What is Pay Per Action (PPA)
Pay per Action is one of the most common affiliate marketing revenue models globally. It offers a fixed commission for each action taken by your audience. The action can be almost anything, depending on the company you are affiliated with.
What is Revenue Share (RevShare)
Revenue Share is another common affiliate revenue model, and it’s most often used in the gambling and casino industries. It offers a fixed percentage of the company’s profits from the returning customers you have brought to them. Gambling industry statistics and forecasts show that the industry will likely hit $112.09 billion by 2025. A solid share of this growth is driven by online casino affiliate partners that bring potential leads to operators, often using the RevShare model.
What is Pay Per Impression (PPI)
Pay per Impression, also known as pay per view, offers payments for the number of times an ad is seen by one of your viewers or readers. In this case, a view is all you need to get payment regardless of whether the person clicks on the link or doesn’t.
What is Pay Per Mille (PPM)
Pay per Mille is a slightly updated Pay Per Impression model. While the previous one counts each impression for commission, this one offers payment for every thousand impressions. Large and well-established affiliate businesses often use the PPM.
What is Pay Per Click (PPC)
Another popular affiliate marketing revenue model is Pay Per Click. As the model’s name suggests, you will get paid every time someone clicks on your affiliate link. In this case, a view doesn’t count, and there isn’t a need for purchase or anything else.
What is Pay Per Lead (PPL)
With this affiliate marketing revenue model, you earn a commission every time a user signs up through your link. Remember that they have to use the link as a referral when signing up. You won’t earn anything if they close the window and later open the website or app directly or through Google search.
What is Pay Per Sale (PPS)
Pay per Sale is another straightforward marketing revenue model. You will get a commission for every person who buys something through your affiliate link. With this model, you can either have a percentage of the sale or fixed revenue from each sale meaning you’d have to keep your conversion rate up there.
What is Pay Per Download (PPD)
Another popular affiliate revenue model, especially in the app industry, it’s the pay per download model. Your affiliate link will lead to the app download location, and every time someone downloads it after using your link, you will earn a commission.
What is Two-Tier Affiliate Programs
This model is a multi-tier program that offers additional tiers for recurring referrals. It solely depends on the company you are affiliated with. Still, it often includes a fixed commission on referrals generated directly by you and an additional commission on referrals generated by your sub-affiliates.