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Compensation Models The following compensation models are relevant for
affiliate marketing. Pay-per-impression (PPI) / Cost-per-thousand (CPM) Cost-per-mil (mil/mille/M = latin/Roman numeral for
thousand) impressions. Publisher gets from Advertiser $x.xx amount of money for every 1000 impressions (page views/displays)
of the Ad. The Ad can be text (AdSense), banner image or rich media. Pay-per-click (PPC) / Cost-per-click (CPC) Cost-per-click.
Advertiser pays publisher $x.xx amount of money, every time a visitor (potential prospect) clicks on the advertiser's Ad.
It is irrelevant (for the compensation) how often an Ad is displayed. commission is only due when the Ad is clicked. See also
click fraud. Pay-per-lead (PPL) / Cost-per-action/acquisition (CPA) / Cost-per-lead CPL) Cost-per-action or Cost-per-acquisition
(CPA), Cost-per-Lead (CPL). Advertiser pays publisher $x.xx in commission for every visitor that was referred by the publisher
to the advertiser (web site) and performs a desired action, such as filling out a form, creating an account or signing up
for a newsletter. This compensation model is very popular with online services from internet service providers, cell phone
providers, banks (loans, mortgages, credit cards) and subscription services. Pay-per-sale (PPS) / Cost-per-sale (CPS) Cost-per-sale
(CPS). Advertiser pays the publisher a percentage (%) of the order amount (sale) that was created by a customer who was referred
by the publisher. This model is by far the most common compensation model used by online retailers that have an affiliate
program. This form of compensation is also referred to as Revenue sharing. Pay-per-call (no abbreviation exists yet) This
is a new compensation model. No official abbreviation exist yet. Advertiser pays publisher a $x.xx commission for phone calls
received from potential prospects as response to a specific publisher Ad. Recently developed call-tracking technology allows
to create a bridge between online and offline advertising. Pay-per-call advertising is still new and in its infancy.
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