Affiliate Marketing is gradually asserting its position as an effective online money-making method, attracting the participation of a large number of users. However, not everyone fully understands the different types of earning methods in this field. In today's article, let's explore with DPS the most popular types of Affiliate Marketing earning methods so you can better understand each type and choose the most suitable affiliate commission model.
Introduction to Affiliate Marketing
Affiliate Marketing, also known as affiliate marketing, is a marketing method in which distributors (Affiliate/Publisher) introduce products or services of suppliers (Advertiser/Merchant) and receive commissions when customers (End User) perform a certain action (such as making a purchase, registering an account, downloading an app) through their link. This is a popular and effective way to make money online, especially suitable for those who want to generate passive income without owning their own products. Affiliate Marketing not only helps distributors earn money but also helps suppliers increase sales and expand their market effectively.
Types of Affiliate Marketing Earning Models
Cost Per Click (CPC)
What is CPC?
Cost Per Click (CPC) is one of the most popular Affiliate Marketing earning methods, in which distributors receive money when someone clicks on their advertising link.
How CPC works
CPC works quite simply: the distributor attracts customers to the supplier's website through a referral link. Commissions are calculated for each valid click on the link, regardless of the customer's subsequent actions.
Cost Per Action (CPA)
What is CPA?
CPA – short for Cost Per Action, is a popular payment method in affiliate marketing Affiliate Marketing, through which distributors (publishers) receive commissions when customers perform a specific action, instead of just counting clicks like CPC. CPA is considered one of the most effective advertising forms because it focuses on the actual results that businesses want, helping to optimize advertising costs and improve conversion rates.
How CPA works
Publishers promote the supplier's (advertiser's) products/services through referral links. When customers visit the advertiser's website via the link and perform the desired action (such as registering, making a purchase, etc.), the publisher receives a commission for that action. The commission amount can vary depending on the difficulty of the action and the value it brings to the business. For example, an action like making a purchase usually has a higher value than just subscribing to a newsletter.
Cost Per Install (CPI)
What is CPI?
CPI – short for Cost Per Install, is a common form of making money in Affiliate Marketing often found in fields such as software, applications, banking, etc. With CPI, the distributor (publisher) receives a commission for each successful installation of a mobile application or software through their referral link.
This is a popular and effective method for promoting mobile apps, as it ensures that the supplier only pays when a specific goal is achieved—gaining new users for their app. CPI is widely used by app developers and businesses looking to increase their app's presence in the mobile market.
How CPI works
The Affiliate Marketing CPI earning model operates based on providers creating app promotion campaigns and publishers promoting these apps through various channels such as blogs, social networks, advertising on other apps, or websites specializing in mobile applications. When users click on the ad link and complete the app installation, the provider pays a commission to the publishers. This amount may vary depending on the popularity of the app, market competition, and the country where the user installs the app. CPI ensures that each installation brings specific value, optimizing costs for advertisers.
Cost Per Lead (CPL)
What is CPL?
Cost Per Lead (CPL) is a form of affiliate marketing in which the Advertiser only pays a commission to the Publisher when the user completes a specific action related to providing contact information, such as filling out a registration form, subscribing to a newsletter, or requesting more information about a product or service.
CPL focuses on collecting potential customer information, helping businesses build a customer database to continue nurturing and converting them into actual customers. This is an effective method to expand the list of potential customers without investing too much in traditional advertising.
How CPL works
The CPL model works based on Advertisers creating campaigns with the goal of collecting contact information of potential customers. Publishers will promote these campaigns through social networking sites, websites, etc. that they own.
When users click on the ad link and complete the registration form, the advertiser pays a commission to the Publisher. This amount may vary depending on the value of the lead and the advertiser's business sector. CPL helps businesses build a quality list of potential customers, thereby optimizing the process of reaching and nurturing customers.
Cost Per Sale (CPS)
What is CPS?
Cost Per Sale (CPS) is one of the most highly rated affiliate marketing models by providers in terms of effectiveness, in which the Advertiser only pays a commission when the user completes a purchase through the ad link. This is a popular marketing model in e-commerce and online retail sectors, as it ensures that advertising costs directly correlate with sales. CPS helps businesses optimize advertising costs and ensures that every expense brings specific revenue.
How CPS works
First, the Advertiser creates marketing campaigns with the specific goal of increasing sales. Publishers then promote the Advertiser's products or services through online media channels. When users click on the ad link and complete a purchase, the Advertiser pays a commission to the Publishers as previously agreed between the two parties, usually a fixed percentage of the order value. CPS ensures that advertising costs only arise when there is actual revenue, helping to optimize the marketing budget.
Cost Per Order (CPO)
What is CPO?
Cost Per Order (CPO) is a method of calculating affiliate marketing fees in which Advertisers pay commissions to Publishers when users complete an order through the ad link. This model is popular in the e-commerce and retail industries, where measuring the effectiveness of ad campaigns through the number of specific orders is very important. CPO helps businesses optimize advertising costs by only paying when actual results—orders—are achieved.
How CPO works
The CPO model operates based on a clear and transparent process. First, the Advertiser creates marketing campaigns with the goal of encouraging users to place orders. Publishers promote the Advertiser's products or services on their channels, and once users click on the ad link and complete an order, the Publisher receives a commission. This commission is usually a percentage of the order value, ensuring that advertising costs accurately reflect the effectiveness of the campaign.
Compare the differences between CPS and CPO
| Criteria | CPS | CPO |
| Commission payment action | Publisher receives commission when the order is fully paid | Publisher receives commission as soon as the customer places an order, regardless of whether the order is paid or not. |
| Commission rate | CPS commission rates are usually higher than CPO because the Publisher is responsible for the entire sales process, from attracting customers to payment. | CPO commission rates are usually lower than CPS because the Advertiser only needs to handle order processing. |
| Risks | The Publisher bears the risk as orders may be canceled or refunded, resulting in no commission received. | The Publisher faces less risk because they receive commission as soon as the customer places an order, regardless of payment outcome. |
CPR (Cost Per Register)
What is CPR?
CPR (Cost Per Register) is one of the Affiliate Marketing earning methods in which the Advertiser pays commission to the Publisher when a user completes personal information registration on a website, app, or service via an advertising link. This is a popular method to increase registrations and potential customers for online businesses.
How CPR works
The Advertiser will cooperate with Publishers to promote marketing campaigns whose main goal is to encourage users to register as members on a certain platform. When users click on the advertising link and complete the required membership registration, the Advertiser will pay commission to the Publisher, based on the number of registrations or a specific payment mechanism.
CPQL (Cost Per Qualified Lead)
What is CPQL?
CPQL (Cost Per Qualified Lead) is a pricing method in the field of Affiliate Marketing, where Advertisers pay commissions to Publishers when a potential customer is considered “quality” or “qualified”. This means that users do not just simply click on the advertisement or fill in information, but must also perform a specific action that the business previously determined as important to be considered a valuable lead.
How CPQL works
CPQL operates based on identifying and clearly defining the criteria for a lead to be considered “qualified”. Typically, these criteria may include conditions such as: potential customers must meet certain specific requirements, such as age, geographical location, industry, or level of interest in the business's product/service. When a user completes and fully meets these criteria, the Publisher will receive a commission from the Advertiser according to a predetermined level.
Compare earning methods in Affiliate Marketing
| Types | Advantages | Disadvantages | When which one to choose |
| Cost Per Click (CPC) | – Advertising costs based on the number of clicks on the ad, making it easy to measure effectiveness. – Suitable for increasing traffic to the website or products. | – Does not guarantee traffic quality and high conversion. – Susceptible to click abuse and increased costs, ineffective. – Suitable for advertising campaigns aimed at increasing traffic. | When you want to quickly increase website or product traffic without requiring specific actions from users. |
| Cost Per Action (CPA) | – Paid when there is a specific action such as purchasing, registering, or completing a service. – Ensures advertising costs are controlled based on actual performance. | – Higher cost compared to CPC due to requiring a specific action from the user. – Requires a strict tracking and verification system to ensure transparency. | When you want to ensure advertising costs only arise when there are specific results such as successful purchases or registrations. |
| Cost Per Install (CPI) | – Suitable for mobile applications and products requiring installation from users. – Easy to measure effectiveness with the number of installations performed. | – Low conversion rate because users may uninstall the application after installation. – High competition from applications with no value. | When you want to effectively and clearly measure the increase in app or mobile product installations. |
| Cost Per Lead (CPL) | – Paid when there is contact information from the user (email, phone, address). – Helps build a quality potential customer list. | – Costs can be high if there is no high lead quality. – Requires professional management and processing of customer information. | When you want to build a quality list of potential customers and be able to directly approach them for conversion. |
| Cost Per Sale (CPS) | – Paid when there is a successful purchase transaction, ensuring advertising costs directly reflect revenue. – Easy to measure effectiveness with sales volume. | – Low conversion rate because it requires users to complete a purchase transaction. – Needs a strict payment and transaction tracking system. | When you want to ensure advertising costs only arise when there is actual revenue from sales transactions. |
| Cost Per Order (CPO) | – Costs based on the number of orders placed, suitable for online sales campaigns. – Easy to measure effectiveness with the number of orders. | – Requires accurate and efficient order management and processing. – Low conversion rate if the ordering process is complex. | When you want to optimize advertising costs for online sales campaigns and clearly measure results by the number of orders. |
| Cost Per Register (CPR) | – Paid when users complete member registration, helping to build a potential customer database. – Easy to measure effectiveness with the number of registrations. | – Low conversion rate because it requires users to complete registration. – Needs professional management and processing of customer information. | When you want to build a potential customer database and be able to directly approach them to convert into members. |
| Cost Per Qualified Lead (CPQL) | identified as “qualified” to convert into a customer. – Ensures costs only arise when there is a valuable lead. | – Requires a clear definition of “qualified” criteria and management to ensure transparency and fairness. – Costs can be higher than other forms. | When you want to ensure advertising costs are only incurred when there is a valuable lead with high potential to convert into an actual customer. |
Do you want to increase revenue through Affiliate Marketing effectively? Don't miss the opportunity to receive professional support from DPS.MEDIA JSC. We are ready to help you develop suitable strategies and achieve the highest results. Contact DPS now to start your successful journey!
