Commission Rate:

• The rate of income an affiliate receives for generating a sale, lead, or click throughs to a merchant’s website.

Most commission rates, by and large, are percentage based when using the CPS model.  Most click through programs or lead gen programs, however, use a flat fee to pay out on leads and clicks.

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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine

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Cost per Sale (CPS):

• The term for advertising in which the advertiser pays only for those clicks where the user clicks through on the banner or ad and actually purchases a product on the advertiser’s site.

This is the model that most retail businesses use in their affiliate programs.  Traditionally, LinkShare has been the network most associated with having retail offers, but the game is constantly changing.  Many networks have retail offers with CPS models now.

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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine

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