To review:
- We show an ad or a link on our website, blog, or social network.
- A customer clicks our unique affiliate link.
- The customer is directed to that Store to make their purchase.
- The affiliate network records the transaction.
- The purchase is confirmed by Store.
- We get paid a monetary commission.
Affiliate marketing income spans a large spectrum. There are some affiliate marketers that will make a few hundred bucks per month and others that make six figures a year. The larger your following, the more money you can make as an affiliate marketer.
But how do affiliates actually get paid? When you choose an affiliate program to promote, you’ll notice there are different payment models. Companies also call it a price model, payout model, conversion type, or another variation.
Regardless of the name, the payment model tells you what goals you will get paid for. If you’re promoting a software product, the action could be a free trial signup. For an affiliate marketer who promotes physical products, the goal will likely be a purchase.
Many programs run with last-click attribution, which means the affiliate who receives the last click before purchase gets 100% credit. However this is changing, as programs improve attribution models and reporting. For example, you could share equal credit for a sale if there were multiple affiliates in a buyer’s conversion funnel.
Five common ways affiliates get paid include:
- Pay per sale, where you earn a commission for each sale you make. It’s a common payout model for eCommerce offers.
- Pay per action, which earns you a commission for a specific action. Many affiliate programs use this payout model because it’s broad and can be applied to different offers: a newsletter signup, a click, contact request, form submission, etc.
- Pay per install, where you are paid for every install generated from your website traffic. The goal of your content would be to promote mobile apps and software so that people download or install them.
- Pay per lead, which pays you every time someone signs up for something. It's a popular payout method because companies use it for sweepstakes, lead generation, and other types of offers. Cost per lead offers are common for beginners because it’s easier to generate leads than to sell products to an audience.
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Pay per click, a rare payout system where you earn
commission on every click on your affiliate link. Pay per click programs
are used by big merchants with a goal to build brand awareness.
Customers don’t need to sign up or buy anything, just to visit the
merchant’s website.
When you shop online, make sure you are smart about the whole purchasing process-know who you are dealing with, know what you are buying, be confident you will get what you have paid for, and ensure that your account and credit card details are being dealt with safely.
There are many advantages to shopping online-you can shop at any time, you don't need to worry about parking and your purchases are delivered to your door! Online auctions can be a lot of fun and can also help you find good deals.
But there are some security traps to watch out for. Use your common sense and some simple steps to ensure your online shopping is as safe as possible.
Top Tips
- Be wary if the website looks suspicious or unprofessional or makes unrealistic promises. Bargains which look too good to be true often are.
- Know what you are buying. Read the description of the product carefully-check the size, colour, value and safety of the product.
- Read all the fine print. This includes refund and complaints handling policies.
- Check the currency, postage and handling and other charges - there may be extra charges you aren't aware of. Only pay via a secure web page-one that has a valid digital certificate.
- Use a secure payment method such as PayPal, BPay, or your credit card. Avoid money transfers and direct debit, as these can be open to abuse. Never send your bank or credit card details via email.
- Always print and keep a copy of the transaction. Keep records of any emails to and from the seller.
- Always conduct transactions within the auction website. Avoid private contact or payment directly with buyers or sellers-scammers will often use this ploy to 'offer a better deal.
Use Your Common Sense and Trust Your Instincts
Most shoppers know the warning signs to look for when buying something in a shop-the same applies to shopping online. Be wary if:
- the website looks suspicious or unprofessional
- the website is offering bargains which look too good to be true, they often are, or
- you are not confident about their use of your information or that you will get what you pay for.
Before making the purchase
- Know who you are dealing with-check that contact details are correct.
- Know what you are buying-read the description of the product carefully-check the size, color, value and safety of the product.
- Read all the fine print including refund and complaints handling policies.
- Check the currency, postage and handling and other charges-there may be extra charges you aren't aware of.
- Check the final cost before paying.
Making the payment
Only pay via a secure web page (one that has a valid digital certificate) Look for the https at the beginning of the address bar and a locked padlock in the browser.
- Use a secure payment method such as PayPal or your credit card. Avoid money transfers and direct debit, as these can be open to abuse.
- Never send your bank or credit card details via email-only via a secure web page.
- Always print and keep a copy of the transaction.