Affiliate monetization works by providing influencers with a commission for their product recommendations made to their audiences. This is captured by using a unique trackable link for the product or brand and then commissions calculated based on the user’s activity.
There are 2 different ways in which affiliate monetization models work:
- Pay per click
Commission calculated per click on a link.
Pros: great for high traffic websites and luxe product awareness as no conversion is needed for higher ticket items. Quick payment.
Cons: less commission, fewer retailers use this model - Cost per acquisition
Commission calculated per sale made upon the user clicking an affiliate link
Pros: higher commission rate, greater retailer selection
Cons: slower payment
Benefits of Affiliate Monetization
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