About Affiliate Commissions

Have you ever thought about the different methods by which affiliate commissions are paid? There are four main types of commission pay categories. They are:

1. Pay Per Sale - Nearly everyone is familiar with this type. Pay Per Sale is when the affiliate program company pays the commission as either a fixed amount or a percentage of each sale that you make.

2. Pay Per Impression - When you place a banner or a link on your website, and it is 'displayed' to your visitor, you will be paid a few cents for that visitor. All the visitor has to do is see it; he/she doesn't have to click on it. If your site is a high traffic site, this is one way to add another stream of income.

3. Pay Per Click - You are paid a commission for each time a person clicks on a banner or link. The commission paid for Pay Per Click would typically be more than for Pay Per Impression.

4. Pay Per Lead - is when a visitor actually signs up for something: a newsletter subscription, a contest, or if a form is filled out asking for more information. These examples would establish the lead you are getting paid for. The dollar amount isn't that high - only one to two dollars but can add up.

When you are researching how commissions are paid, you should also look at whether the program pays only on one level or more than one. These are called single-tier, two-tier or multi-tier. Some programs offer commissions down four or five tiers. The tiers are created when another person signs up as an affiliate using your link.

Another aspect of affiliate commissions is how often the commissions will be paid. Some companies pay quarterly, while others pay monthly or bi-weekly, depending on the amount of money owed to you.

The amount of commission owed to you also plays a part in when you are paid. Most companies do not pay until your accumulated commissions is $50 or more. A few companies do not pay the first month, but pay one (or three) months after the commission has actually been earned. Sometimes you can choose your own level when you sign up as an affiliate, but not often.

As you can see, there's a lot more information you need to know about affiliate commissions than getting them. Keep these things in mind when you choose affiliate programs to promote and it will help to increase 'your' commission revenue.