Affiliate Marketing And Pay Per Click Cost

When you write articles in the blog is constantly using different designations for the CPA type, EPC, CTR, which not everyone can be understood. Therefore, especially for novice users decided to hold a small "outreach." I remember that I myself was once confused in certain internet terms, especially when there are too many different information.

Earlier, in principle, particularly in runet it was not what deal - most people are faced with a maximum of PPC and CTR. Now intensified affiliate pay-per-leads are + are increasingly began to use in the reports EPC indicators, eEPC (the same Adsense, for example). In general, it's time to get acquainted with all of these symbols.

In an environment of Internet marketing and online earnings, all users share on advertisers (Advertiser) and Partners / Webmasters (Publisher). The first sell their goods on the Internet or services completely control the process of ordering, delivery and payment. Second - exclusively devoted to the promotion of a product / service to give some commissions. Depending on the options for cooperation (PPC, PPL, PPS) webmaster can get different benefits. Consider all these options in detail.

Pay Per Click (PPC, Pay Per Click)

The Pay Per Click monetary remuneration (fixed or percentage) is paid for each time a user clicks on the link, banner, or product on the website webmaster. This is the easiest and most common way of cooperation.

You just need to look at the search results Google or Yandex, where you can see the ads (contextual advertising), working on the principle of Pay Per Click. They also can be observed in large numbers at various sites on the Internet, including in my blogs. In contextual advertising from Google advertisers (Advertiser) use the Adwords service to attract audiences, and webmasters (Publisher), in order to earn money on their websites, - recorded in Adsense.

When working with Pay Per Click systems you will find the online term Cost Per Click (CPC, cost per click) - a fixed value or a percentage paid for a single click. This number will help you understand how much you can earn as a webmaster. It is logical that the cost per click is less than the income of the options below (CPL, CPS), however, and to make a driving traffic easier. In this blog you can find reviews of the different affiliate programs pay-per-clicks.

Pay Per Lead (PPL, payment for Lida)

The key concept in the Pay Per Lead - Lead (Lead) - it is an event, a perfect user to the advertiser's site. To it are: the registration, an indication of personal information about themselves, filling the special form / questionnaire / application downloading some programs, etc. That is, in fact, lead - perform the desired action from the user.

Consequently Pay Per Lead - type of cooperation when the partner gets paid for every lead held. Webmasters need to visitor not just clicked on a banner or link to an interesting and theoretically was interested in the product or service as a commission will be paid only under certain conditions (registration, filling out forms, etc.)

One example of such a scheme - affiliate Admitad, where a webmaster affiliate receives payment under the scheme Pay Per Lead. The specialized gaming affiliate Gameleads found more "complex requirements" - not just a user registration, and game characters pumping them up to certain levels. You can look at the table of their promotional offers (offerov), where everything is clearly painted:

The columns "Registration" and "Actions", in fact, see figure Cost Per Lead (CPL) - the amount of money that is paid for each successful lead.

Pay Per Sale (PPS, pay per sale)

Commission circuit Pay Per Sale, in fact, like the previous one and involves the payment of a fixed amount or a percentage from the sale of goods / services to the advertiser's site. That is, the webmaster gets money for every purchase on the corresponding website, which attracts visitors.

The simplest example - make money by selling DVD Player (in the affiliate online stores) - for each disc sold to you due to 10-15% of its value. This figure is called Cost Per Sale (CPS) - the amount or percentage of income received for each sale.

Finally I want to say also about another internet term - Cost Per Action (CPA) - the price (cost), which is set for any act committed by a person who was given the webmaster at the advertiser's site. The indicator is used in both models of cooperation - Pay Per Lead and Pay Per Sale. In this case for PPL, he stands for Cost Per Action (pay per action), and PPS - means Cost Per Acquisition (payment for purchase). From this it can be said that the CPL and CPA are synonymous, although the latter term is more generic.

Internet marketing terms (of Internet advertising)

The internet marketing is a set of specialized terms that are used to evaluate the effectiveness of online advertising. I suggest some of them to consider, the more that webmasters are also faced with them.

Impressions (views or impressions) - the process when a banner, a product page or a link to a website visitor viewed. The user is not required to commit any action or clicks. This Internet-term common in the banner advertising when advertisers consider paying for impressions. The model of such cooperation is called Pay Per Impression.
Cost Per Thousand Impressions (CPM) - pay the cost per 1000 impressions (Impressions) links, banner or advertiser of the product on the site webmaster. From the point of view of the effectiveness of online advertising PPC is better to focus on performance and PPL, although CPM could be successful. Whatever it was, the main task of the advertiser - to generate as much as possible at the lowest cost with disabilities. An alternative indicator to be called CPM Revenue Per Thousand Impressions (RPM) - evaluates the same, but from the point of view of the webmaster, that is, it represents income (Revenue), rather than the cost (Cost).
The term Click-Through Rate (CTR) is most actively used in online advertising in the PPC model. He estimates the percentage of impressions that result in a click. It is believed by the formula:
CTR = 100% * (Clicks / Impressions)
For example, you have a CTR = 2%. This means that for every 100 impressions will be 2 clicks. That is, the higher the CTR, the more clicks on the ads will receive. For this option, "hunt" many webmasters working in Google Adsense. The system will see your CTR reports.

Also, you can often come across the term Conversion Rate (CR, conversion), which determines the success of a site / page as a whole. It shows the percentage of site visitors clicked on, which made the required action (filling in forms, registration, subscription). Calculation formula:

CR = 100% * (number of actions / number of visitors)

That is, for example, if you specify that the CR applications for loan processing online = 7%, this means that 7% of visitors from all carried out this action. In fact, if the action = clicks, the conversion is similar to the CTR.

In the field of internet marketing and affiliate programs often use the term Earnings Per Click (EPC). Despite the fact that the literal translation sounds like "earnings with a single click", in fact, in most cases it refers to income from 100 clicks (EPHC - Earnings Per One Hundred Clicks). It is believed by the formula:

EPC = (Commissions Earned / Clicks) * 100

For example, you are working with an advertiser that pays $ 25 for processing the loan. All in all it was sent to the site visitors in 1000, which gave you 5 sales. Total it turns out, the total earnings: 5 sales * $ 25 = $ 125, and the EPC = $ 125/1000 * 100 clicks = $ 12.5.

By the way, several times I have seen information that EPC can not be considered income to 100 clicks and from 1000. In this case, EPC = figure would be $ 125.

There are affiliate programs that represent the average value of the EPC for a certain period of 7 days, one month, 3 months. You can see them on the statistics Gameleads screenshot above or in the following example:

You need to carefully read the description of the affiliate program in order to understand how it is considered an indicator EPC. Knowing the logic calculations, and having in front of the averaged value of EPC, you can assess in advance how to effectively deal with one or another direction.
Internet-term offer means "promotional offer" (variants of cooperation) of the affiliate program. In the frames of a CPA network, as a rule, there are many different offer to work.