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Describing The Most Used Compensation Marketing Models

8th December 2014
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There are numerous payment calculation methods that expert advertisers and publishers are using in their activities. Here is a list of the best methods, described in detail:

CPA marketing

In order to ensure a profitable return on marketing investment, you need to use a Cost-per-Acquisition or CPA marketing model in order to run an affiliate program. This is really important as commission will only be paid to the affiliate when a sale is completed. 


An affiliate marketer can generate concrete sales leads through sign-ups or similar converting actions with the help of Cost-per-Lead or CPL models. Moreover, these payment calculation methods can also help in releasing a new product on the market or to encourage customers to buy high-value products.


To encourage a client to download a particular resource, affiliate marketers can make use of Cost-per-Download models, which are also the perfect choice for campaigns that want to build a list of loyal customers. 


Between marketing models, this is a powerful tool and a perfect choice for high-value items, especially if used in combination with tracking technologies. Loyal clients will have the opportunity to buy a certain product directly from their mobile phones.

CPC advertising

All the online campaigns created with the intention of generating and measuring awareness and interest should use Cost-per-Click advertising as a measuring unit. Such campaigns will gather commission for clicks generated to your website.

CPM advertising

Publishers of all levels can use CPM advertising campaigns to obtain an advantage and to offer impressions at a really competitive price. This term stands for Cost-per-Thousands-Impresions or Cost-per-Mille. There are numerous advantages that you can obtain as an advertiser, such as: specifying site environments, utilize all kind of specialist tracking technologies and other targeting tools to prevent duplication and to improve your exposure.

Fixed Cost

When advertisers pay a specific cost for delivery of ads online, normally in a particular period of time and irrespective of how popular that ad is or what kind of response it will obtain from the users, they are practicing fixed cost compensation. Cost-per-day is practically the main example of fixed cost compensation since advertisers spend a fixed cost in order to publish an ad for a day.

Check out our related posts for more information regarding Affiliate Marketing. Drop us a comment if you have any questions!