How are affiliate commissions calculated?

Affiliate commissions can be calculated in various ways depending on the specific affiliate marketing model being used. Here's a breakdown of how commissions are typically calculated in some common affiliate marketing models:

1. **Cost Per Sale (CPS)**: In CPS affiliate marketing, commissions are calculated as a percentage of the sale amount or as a fixed amount per sale. For example, if the agreed-upon commission rate is 10% and a referred sale is worth $100, the affiliate would earn $10 in commission.

2. **Cost Per Action (CPA)**: In CPA affiliate marketing, commissions are earned for specific actions taken by referred users, such as signing up for a service or completing a purchase. The commission amount is predetermined by the merchant for each qualifying action completed by the referred user.

3. **Cost Per Click (CPC)**: CPC affiliate marketing pays affiliates a commission for each click generated by their referral links. The commission amount is typically a fixed rate per click, regardless of whether the click leads to a sale or other action.

4. **Cost Per Lead (CPL)**: CPL affiliate marketing compensates affiliates for generating leads for the merchant. The commission amount is determined based on the number of qualified leads delivered by the affiliate, with each lead earning a predetermined commission.

5. **Pay Per Call**: Pay Per Call affiliate marketing pays affiliates for driving phone calls to the merchant's business. Commissions are earned for each qualifying call generated by the affiliate, with the commission amount often based on factors such as call duration or quality.

6. **Revenue Sharing**: In revenue sharing affiliate programs, commissions are calculated as a percentage of the revenue generated by the customers referred by the affiliate. Affiliates earn ongoing commissions for as long as the referred customers continue to make purchases or subscribe to the merchant's services.

These are just a few examples of how affiliate commissions can be calculated across different affiliate marketing models. The specific commission structure and calculation method can vary depending on the agreement between the merchant and the affiliate, as well as the goals of the affiliate marketing campaign.