Review of payout models in affiliate marketing

Understanding payment models is a critical skill for any affiliate marketer, especially given the wide range of payout options on an offer. This guide dives into the most popular payment models and offers insights on how to strategically leverage each one for maximum effectiveness.

For those in the iGaming or Dating industries, understanding the nuances of these models can help you choose the right offers and optimize profits.

What is a payment model?

Simply put, a payment model determines the reward you receive for conversions. It can be based on sales, lead generation, or specific user actions such as submitting contact information or downloading an app. Payment terms set the metrics by which advertisers evaluate campaign performance, such as clicks, sales, registrations, app installs, or revenue generated – each of which results in payouts.

Different commission structures further drive financial incentives, creating multiple earning opportunities for partners promoting products or services.

Common Payment Models

SOI (Single Opt-In)

With SOI, you get paid after a user completes a basic registration. This typically involves entering simple information and you receive your reward.

For example: Imagine you are promoting a dating site that pays $1 per SOI. When a user signs up, you earn $1.

Pros: Simple action, resulting in high conversion rates.

Cons: Lower payouts compared to models that require confirmation.

DOI (Double Opt-In)

DOI pays out when users confirm their registration via email. Users must register and then click a confirmation link.

Example: Promoting a dating platform with $3 per DOI. A user registers and confirms via email, earning you $3.

Pros: Attracts more engaged traffic as users confirm interest.

Cons: Longer process may reduce conversion rate.

CPA (Cost Per Action)

One of the most popular models in iGaming, CPA pays a fixed amount for certain user actions, such as registration or a minimum deposit.

For example: A casino offers a $50 CPA for every new user that makes a deposit. You drive traffic, and users who deposit earn you $50.

RevShare (Revenue Share)

RevShare gives you a percentage of the revenue generated from a user's continued engagement. This is popular in iGaming, where users' activity in casinos or betting platforms generates a steady stream of revenue.

Example: A casino offers 30% RevShare. You earn continuously from a player's ongoing activity and share in the casino's profits.

CPL (Cost Per Lead)

CPL pays for each qualified lead, such as a new registration or form submission. It's common in dating, where one lead can initiate monetization.

Example: A dating site offers $5 per registration and pays you for each new user, regardless of their continued activity.

CPI (Cost Per Install)

CPI is used for mobile applications. You earn a payout for each app install, popular with dating and betting apps.

Example: A dating app offers $3 per install. Each app download earns you $3.

CPC (Cost Per Click)

CPC rewards you for each click on your ad or landing page link. This model is great for generating traffic.

For example: Advertising a landing page with a CPC payout of $0.50. Each click on your ad will earn you $0.50.

Additional Models

• CPS (Cost Per Sale): Earns you a commission on sales, often used in selling in-game items or premium features.

• CPM (Cost Per Mille): Pays per thousand ad impressions, focusing on brand awareness.

• Hybrid: Combines multiple models, like CPA + RevShare, for diversified earnings.

• PPV (Pay Per View): Pays per content view, such as video or ad views.

• COD (Cash On Delivery): Common in e-commerce, where you earn for purchases paid upon delivery.

• CC-Submit: Rewards you for credit card registrations, used in financial services or e-commerce.

• Trial: Pays for offering users a free trial of a product or service, common in SaaS and subscription products.

All payment models comparison chart

Conclusion

Each model has unique advantages, and choosing the right one depends on the type of offer you’re promoting, your willingness to take risks, and your focus on long-term profits.