CPA vs. Revenue Share vs. CPL Commission Plans

BuyGoods supports three types of commission plans: CPA (cost-per-action), revenue share, and CPL (cost-per-lead).

CPA

CPA is an online advertising payment model in which payment is based solely on qualified actions such as a sale (Ex: $100 CPA for every sale).

Benefits: Typically a CPA is paid out on a front end sale only, and not on any upsell or downsell sales. Advertisers know exactly the amount they will be paying affiliates so payouts are more predictable. It is easy for affiliates and vendors to calculate commissions and allows affiliates to scale more quickly. 

Cons: Advertisers are fully responsible for any refunds and chargebacks, so it is riskier for the advertiser/vendor. However, because of this many large affiliates tend to prefer a CPA model. 

Revenue share

Revenue share is a performance based online advertising payment model. Vendors share a portion of their total sales with affiliates (Ex: 75% commission). 

Benefits: Affiliates are responsible for refunds and share risk of chargebacks with the vendor. 

Cons: Revenue share is more difficult for vendors and affiliates to predict as the commission is performance based and tied to the total order value. 

CPL

CPL is an online advertising payment model in which an affiliate is paid a fixed amount based on a lead capture. Typically a lead is considered an email address. 

Benefits: Vendors can pay a fixed amount based on the value of a lead.

Cons: Not all email addresses are worth the same and sometimes vendors can overpay for a lead. 

BuyGoods supports CPA, revenue share, and CPL based payment methods. 

If you have any questions about what commission model you should choose, please contact your Account Manager.