Commission Structures and Payment Models Flashcards
7 cards from real Affiliate Marketing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commission Structures and Payment Models flashcards as text
What does CPA stand for in affiliate marketing?
Answer: Cost Per Acquisition
CPA stands for Cost Per Acquisition (or Cost Per Action), meaning the affiliate earns a commission when a specific action such as a sale or sign-up is completed.
In a Cost Per Click (CPC) affiliate model, when does the affiliate earn a commission?
Answer: When a visitor clicks on the affiliate's link
In a CPC model, affiliates earn a commission each time a user clicks on their affiliate link, regardless of whether a sale or conversion occurs.
What is a flat-rate commission structure in affiliate marketing?
Answer: A fixed dollar amount paid per conversion regardless of sale value
A flat-rate commission pays a fixed dollar amount per qualifying action, such as $10 per sale, regardless of the total value of the transaction.
What is the key difference between a gross commission and a net commission in affiliate programs?
Answer: Gross commission is based on total sale price while net commission excludes taxes and returns
Gross commission is calculated on the full sale price, while net commission is calculated after deducting taxes, returns, and other adjustments, resulting in a lower payout.
What is a 'lifetime value' (LTV) commission in affiliate marketing?
Answer: Ongoing commissions earned on all future purchases made by a referred customer
A lifetime value commission means the affiliate earns commissions on all future purchases made by a customer they originally referred, for as long as that customer remains active.
What does a recurring commission model mean for an affiliate marketer?
Answer: The affiliate earns a commission every time a referred customer renews their subscription
A recurring commission means the affiliate earns a percentage each billing cycle as long as the customer they referred continues to pay for a subscription or service.
In which affiliate payment model does the affiliate earn money each time their ad is displayed to a visitor, regardless of clicks or sales?
Answer: CPM (Cost Per Mille)
CPM (Cost Per Mille) pays affiliates a set rate per 1,000 impressions, regardless of whether visitors click the ad or make a purchase.