🧲 Referral & Affiliate Program ⇒ Understanding Affiliate Commission Structures: Which is Best for You?

[Em Vicky Khan]

Affiliate programs come with different commission structures. Here are the most common ones and how to decide which works best for you:

Pay-Per-Sale (PPS):

How It Works: You earn a commission when a sale is made through your referral link. Commission rates range from 5% to 50%, depending on the product or service.

Best For: High-ticket items or services where you can earn a significant commission per sale.

Pay-Per-Click (PPC):

How It Works: You earn money every time someone clicks on your affiliate link, even if they don’t make a purchase. The payout per click is usually small (e.g., $0.10 to $1 per click).

Best For: Driving traffic and monetizing large audiences, such as through blogs or social media.

Pay-Per-Lead (PPL):

How It Works: You earn a commission when a visitor takes a specific action, like signing up for a free trial, filling out a contact form, or subscribing to a service.

Best For: Niche markets where you can generate leads, such as in finance, insurance, or tech services.

Recurring Commissions:

How It Works: You earn a commission every time your referral makes a payment, typically for subscription-based services or memberships.

Best For: Subscription services like web hosting, SaaS platforms, and membership programs.

Pro Tip: Consider your audience’s behavior. If they’re more likely to make purchases, PPS may be your best option. If they’re more likely to click but not buy, PPC or PPL might work better.