Every affiliate offer answers one question: what exactly are we paying for? The payout model decides who carries the risk, which affiliates will run the offer, and how you track it.
The main payout models
CPA: cost per action
A fixed amount for a defined action, such as a deposit, a subscription or a completed order. The advertiser only pays for results, so CPA is the most common model in affiliate networks.
CPL: cost per lead
A fixed amount for a lead: a form fill, a signup or a call request. Leads come faster than sales, so affiliates like CPL, but lead quality needs watching.
CPS: cost per sale
A payout for each sale, often a percentage of the order value. Common in ecommerce.
CPI: cost per install
A fixed amount for each app install, usually reported by the advertiser or their mobile measurement partner.
CPC: cost per click
Payment for every click. The advertiser carries the most risk, so CPC needs strong click fraud checks.
RevShare: revenue share
A percentage of the revenue the customer brings, sometimes for months or for life. Common in betting, trading and SaaS. The affiliate shares the risk and the upside.
Who carries the risk?
| Model | Advertiser risk | Affiliate risk |
|---|---|---|
| CPC | High | Low |
| CPI / CPL | Medium | Medium |
| CPA / CPS | Low | Higher |
| RevShare | Lowest | Highest, with the biggest upside |
How to choose
- New offer, unproven conversion rate: CPL or CPI brings affiliates in faster.
- Proven funnel: CPA keeps your margin safe.
- High lifetime value: RevShare attracts affiliates who build long-term traffic.
- Several steps that matter: pay for more than one event, such as a small amount for signup and more for the first deposit.
Your margin as a network
As a network you have two numbers per conversion: the revenue the advertiser pays you and the payout you pass to the affiliate. The gap is your margin. Track both on every conversion, so you can see profit by offer and by affiliate, not just volume.
Tracking each model
Every model needs the conversion tied to the click. CPS and RevShare also need the sale amount in the postback, and multi-event offers need the event name. In Affilix an offer can be CPA, CPL, CPS, CPI or CPC, with several events per offer, each with its own payout and its own affiliate postback.
Read about tracking offers and events or running an affiliate network.