In finance, when participating in making money with affiliate marketing, you will probably encounter a lot of terms such as CPA, CPS, CPL,… but do you already know the meaning of the term of commission when joining affiliate marketing in the financial niche?
To understand the above terms, let’s learn about these forms of roses with Ola City!
I. Popular types of commission today
1. CPC
This is the most basic form of affiliate marketing commission, in which commissions are paid when customers click on the Supplier’s website through Publisher ads. The cost of commission will be calculated based on the number of clicks, for example, $0.022/click.
CPC is the easiest form of fraud because a distributor can click on the marketing link to receive commissions, so this form is no longer used much in affiliate marketing.
2. CPS
CPS is the most modern and sustainable form of affiliate marketing commission for both suppliers and distributors, with a win-win principle. In this form, commissions are only paid when customers generate purchases and services from suppliers.
Since commissions are charged for each successful purchase, CPS is an affiliate marketing form that ensures fairness and profitability for both parties, avoiding fraud issues. Therefore, CPS is currently the most popular trend when participating in affiliate marketing.
3. CPA
It is the most common form of commission in the Affiliate Marketing model. Publishers will be paid a commission when a customer takes a specific action requested by the provider through publisher ads. This action can be: purchase, fill out a survey form, install an app…
4. CPO
It is a form of commission received when customers successfully order on the Advertiser’s website. CPO will be more suitable for industries that need advice before deciding to buy, which is the field of beauty and health.
II. Types of commissions in affiliate marketing financial niche
1. CPL
CPL which is the form of commission per lead. The lead here is the simple lead, who is interested in the product and fills in the information (name, phone number, email…)
Pros:
- The commission share rate of the above form is higher than CPM (Cost per Mile), CPC (Cost per Click).
- CPL does not require the order to be successful, as long as the customer completes the information on the samples in accordance with the supplier’s requirements, the publisher has easily received a commission.
2. CPQL
CPQL stands for Cost Per Qualified Lead, a commission credited for each quality lead. Qualified lead here is warm lead, qualified lead, the lead has interest and the demand for products and services is very strong.
Pros:
- The commission rate of this form is higher than CPL because of more customer information, more detail and quality.
- This customer doesn’t necessarily have to make a successful order like CPS.
3. CPA
CPA stands for Cost Per Action, which means commission that arises on one take of an action. CPA includes the following forms of charging:
- CPL (Cost per Lead): The form of advertising charge when customers fill in the forms on the website in accordance with the requirements of the Supplier.
- CPS (Cost per Sale): The form of advertising charge when customers successfully perform the supplier’s online purchases.
- CPI (Cost per Install): The form of charging ads when customers install supplier applications.
Pros: Commissions of this form are higher than running CPC or CPM, easy to find customers and instructions for installing the app.
4. CPI
CPI stands for Cost Per Install, a commission credited for each customer lead per software installation (app)
5. CPR
CPR is the latest form of commission in affiliate marketing, which is a commission received for each real customer and needs to use the service from a mobile app. This form helps to enhance brand identity and interaction between businesses and customers using the app.
Pros:
- Help maximize the reach of app users.
- Help attract real users.
6. CPS
It stands for Cost Per Sale, the form of commission received when the order is successful. For financial products, successful products are when customers successfully apply for loans and are disbursed loans from partners.
Pros: Commissions of this form are the highest, however this level of conversion is the most difficult.
III. Types of combined commission
1. CPL + CPS
It is a form of commission combining two forms of CPL, CPS. Commissions will be recorded when customers fill out loan application information, at which point the Distributor will receive a commission under CPL, if the customer of these applications disburses successfully, the Distributor will receive additional bonus commissions under CPS
For example, if you apply for a loan at Money service, if the customer registers for information successfully, you receive a commission of $0.79/CPL, if the customer is successfully disbursed, the commission receives an additional CPS of $11.45, so you receive a total commission of $12.24/ (CPL+CPS).
2. CPQL + CPS
It is a form of commission combining two forms of CPQL and CPS. The commission will be recorded when the customer fills in the loan application information (this application with more customer information, this lead is the lead of the quality potential customer), at which point the Distributor will receive a commission under QPQL, if the customer of these applications successfully disburses, The distributor will receive additional bonus commissions under the CPS.
IV. So is it easy to make money for affiliate marketing in 2021?
Depending on the case of the person working, the difficulty of making money varies. Being able to answer this question is neither difficult nor easy.
- It’s not easy: If you’re a complete beginner to affiliate marketing and don’t have financial knowledge yet.
- It’s not difficult: If you persist in cultivating, learn more knowledge. Draw on the affiliate marketing experience of those who are ahead of the industry. It is difficult to thoroughly learn financial products and promote and market them to customers accurately and creatively
Therefore, you need time to hone your skills, knowledge and experience through the process of running real campaigns. You will need to understand the needs, desires, and behaviors of consumers’ financial products more.
Conclusion
Hopefully, the above article of Ola City has given you the necessary information that you are looking for to be able to start building and developing a monetizing system with your own affiliate marketing. I hope you get the results you deserve soon! If it’s helpful, don’t forget to share the post with your friends.
Best regards,
Ola City Global
