Compensation methods

Compensation methods (Remuneration), Pricing models and business models used for the different types of internet marketing, including affiliate marketing, contextual advertising, search engine marketing (including vertical comparison shopping search engines and local search engines) and display advertising.

The following models are also referred to as performance based pricing/compensation model, because they only pay if a visitor performs an action that is desired by the advertisers or completes a purchase. Advertisers and publishers share the risk of a visitor that does not convert.

Cost-per-sale (CPS). Advertiser pays the publisher a percentage of the order amount (sale) that was created by a customer who was referred by the publisher. revenue sharing.

Cost-per-action or cost-per-acquisition (CPA), cost per lead (CPL). Advertiser pays publisher a commission for every visitor referred by the publisher to the advertiser (web site) and performs a desired action, such as filling out a form, creating an account or signing up for a newsletter. This compensation model is very popular with online services from internet service providers, cell phone providers, banks (loans, mortgages, credit cards) and subscription services.

Similar to pay per click, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate (CPA). Advertiser pays publisher a commission for phone calls received from potential prospects as response to a specific publisher ad.

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Wikipedia