payment plan

How do payment plans for affiliates work?

New affiliates will no doubt have many questions that they would like answered when jumping into a program. One of these will no doubt be regarding payment plans and how affiliates will actually receive their money. Let’s take a look at the standard payment programs you can find in the world of affiliate marketing.

How is payment tracked?

How can a merchant tell which of their affiliates deserves a payment? There are two ways that things are usually tracked – links and codes. These can both be placed in marketing programs that affiliates create.

Tracking is then used to determine when either the link is followed or a code is used. The payment plan will grant the affiliate their commission.

Pay per sale

Many affiliate programs work with a pay per sale payment plan. This a standard program that you will find many programs offering. The affiliate will get paid a percentage of the sale price of the product when the customer purchases a product through the affiliate’s marketing. Find a promise of 10% off at check out with a code or by clicking through a link, and you will be looking at a pay per sale payment plan!

Pay per lead

Pay per lead is a little more complex and is rooted in an affiliate’s ability to create conversions. The consumer is being persuaded to visit the target website and complete a certain action. This might be filling out a certain form, registering for a service, or downloading a piece of software. When we see an affiliate deal with an offer of “sign up with my code”, the affiliate offering it will most likely be on a pay per lead payment plan.

Pay per click

You might also find a payment plan based on pay per click. Marketing campaigns for pay per click programs are designed to encourage consumers to move from the platform the affiliate is marketing on to the website of the merchant. The merchant then pays the affiliate based on the increase in web traffic that comes from this source.

Hybrid models

Occasionally, you might find hybrid payment plans that offer a combination of both. These can be fantastic if an affiliate wants to create a marketing strategy that offers options to consumers, or they intend to market across different platforms, each with their own demographics and target audiences.

Which is right for me?

Most affiliate payment plans will be based around pay per sale, but it is possible to find pay per lead and pay per click depending on the program. New affiliates should probably stick with pay per sale until they are comfortable with running programs and creating marketing campaigns that are engaging and effective.

Though they can be a little rarer, moving to a hybrid model can therefore be a great move for an affiliate willing to pick up another way to get paid. Top affiliates might even be juggling payment plans across each of their programs!

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