Commission Structures and Payment Models Flashcards
7 cards from real Affiliate Marketing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commission Structures and Payment Models flashcards as text
What is a sub-affiliate commission in affiliate marketing?
Answer: A commission earned by recruiting other affiliates into a program
A sub-affiliate commission allows an affiliate to earn a percentage of commissions generated by affiliates they have recruited into a program, creating a multi-level earning structure.
Which affiliate payment model pays commissions based on qualified leads generated rather than completed sales?
Answer: CPL (Cost Per Lead)
CPL (Cost Per Lead) pays affiliates for each qualified lead they deliver, such as a form submission or email sign-up, even if the visitor does not make a purchase.
What is 'clawback' in affiliate commission structures?
Answer: The reclaiming of commissions by the advertiser due to refunds, fraud, or policy violations
Clawback refers to the advertiser reclaiming previously paid commissions from an affiliate, commonly triggered by customer refunds, chargebacks, or violations of program terms.
What does 'net-30' mean in affiliate program payment terms?
Answer: Payment is issued 30 days after the end of the earning period
Net-30 means the affiliate will receive payment 30 days after the close of the commission period, allowing time for refunds and verification before funds are disbursed.
What is a two-tier affiliate program?
Answer: A program where affiliates earn commissions on their own sales and on sales made by affiliates they recruit
A two-tier affiliate program rewards affiliates for their own direct sales at tier 1 and also pays a smaller commission on the sales made by affiliates they have personally recruited at tier 2.
What is Cost Per Sale (CPS) in affiliate marketing?
Answer: A commission model where affiliates earn a percentage or fixed amount for each confirmed sale
CPS is a commission model where affiliates earn a set percentage or fixed dollar amount for every sale completed through their unique affiliate link.
Which payment model would be MOST beneficial for an affiliate promoting a SaaS subscription product?
Answer: Recurring commissions, to earn ongoing income as long as customers remain subscribed
Recurring commissions are ideal for SaaS products because they allow affiliates to earn income every billing cycle as long as the referred customer maintains their subscription, creating compounding passive income.