How do affiliate marketing platforms pay commissions?

Affiliate marketing platforms pay commissions to affiliates based on predefined commission structures and payment models. The specific payment methods and frequency can vary depending on the platform and the terms established by the advertiser or merchant. Here are some common methods used to pay affiliate commissions:

1. **Pay-Per-Sale (PPS)**: In a pay-per-sale model, affiliates earn a commission each time they refer a customer who makes a purchase or completes a desired action, such as subscribing to a service or making a booking. Commissions are typically calculated as a percentage of the sale amount and are paid out once the sale is confirmed.

2. **Pay-Per-Lead (PPL)**: Pay-per-lead programs compensate affiliates for generating qualified leads or referrals, such as sign-ups, form submissions, or inquiries. Affiliates earn a commission for each valid lead they deliver to the advertiser, regardless of whether the lead results in a sale.

3. **Pay-Per-Click (PPC)**: Pay-per-click programs pay affiliates based on the number of clicks generated by their referral links or promotional materials. Affiliates earn a commission for each click that directs traffic to the advertiser's website, regardless of whether the click leads to a sale or conversion.

4. **Hybrid Models**: Some affiliate programs may combine multiple payment models, such as pay-per-sale and pay-per-lead, to offer affiliates a combination of commission structures based on different actions or outcomes.

Once commissions are earned, affiliate marketing platforms typically facilitate the payment process through various payment methods, including:

- **Electronic Funds Transfer (EFT)**: Payments are transferred directly to the affiliate's bank account electronically.
- **PayPal**: Affiliates receive payments through online payment platforms like PayPal.
- **Check**: Payments are issued as physical checks and mailed to the affiliate's address.
- **Wire Transfer**: Payments are sent directly to the affiliate's bank account via wire transfer, typically for international transactions.

The frequency of commission payments can vary depending on the affiliate program and the payment terms established by the advertiser or merchant. Some programs pay commissions monthly, while others may have longer payment cycles, such as quarterly or biannually. Affiliates should review the payment terms and conditions of each affiliate program to understand how and when they can expect to receive their commissions.