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Summary
Compensation methods (Remuneration), Pricing models and business models used for the different...
Content
Compensation methods (Remuneration), Pricing models and business models used for the different types of internet marketing, including affiliate marketing, contextual advertising, search engine marketing (including vertical comparison shopping search engines and local search engines) and display advertising.
The following models are also referred to as performance based pricing/compensation model, because they only pay if a visitor performs an action that is desired by the advertisers or completes a purchase. Advertisers and publishers share the risk of a visitor that does not convert.
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 form of compensation is also referred to as revenue sharing.
Cost-per-action or cost-per-acquisition (CPA), cost per lead (CPL). Advertiser pays publisher a commission for every visitor 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,
Created by:
Freebase Data Team
Jul 28, 2007
Last edited by:
Freebase Data Team
Jul 28, 2007
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