Affiliate pricing models define the event or value basis that triggers a commission. The same acronym can be implemented differently by different advertisers, so the written campaign terms—not the label—must control the calculation.
CPA: Cost per action
CPA pays when a user completes a defined action. The action might be an account registration, approved application, subscription or another business event. The campaign brief must state whether the action is merely submitted or must pass additional validation.
Formula: payable CPA amount = number of approved actions × agreed rate.
The main risk is ambiguity: “registration” may mean a form submission, a verified account or an approved account. Define the exact state.
CPL: Cost per lead
CPL pays for a lead that meets specified qualification rules. Those rules may cover required fields, geographic eligibility, consent, contactability, uniqueness and relevance.
Formula: payable CPL amount = number of accepted unique leads × agreed rate.
A lead should not be rejected using criteria invented after it was submitted. Publish the qualification and duplicate rules before launch, and provide a reason code for rejected records.
CPS: Cost per sale
CPS pays for a validated sale. The commercial definition should explain whether the order must be paid, fulfilled, delivered or remain unrefunded after a stated period.
Formula: commission = eligible sales × fixed amount, or eligible sales value × agreed percentage.
Returns, cancellations, chargebacks, taxes and discounts can change the commission base. Specify how each is treated.
CPI: Cost per install
CPI pays for an eligible app install, often subject to attribution, device, geography and fraud controls. An install may be excluded if it is duplicated, generated by prohibited incentives or does not meet the campaign's event definition.
Revenue share
Revenue share pays a percentage of a defined revenue base. The contract must identify gross or net revenue, the deduction categories, reporting period, attribution window and treatment of refunds.
Formula: commission = eligible revenue base × agreed share percentage.
Never assume that “revenue” means the same thing to both parties.
Hybrid models
A hybrid can combine a fixed action payment with a revenue share or another variable component. It can balance acquisition costs and downstream value, but it is harder to reconcile unless each component has a separate definition and ledger entry.
Compare models using the right questions
| Model | Payable event | Critical definition |
|---|---|---|
| CPA | Defined action | What exact status qualifies? |
| CPL | Accepted lead | What makes a lead valid and unique? |
| CPS | Validated sale | How are returns and chargebacks treated? |
| CPI | Eligible install | Which install and attribution signals count? |
| Revenue share | Eligible revenue | Which revenue and deductions are included? |
| Hybrid | Multiple events or bases | How are components calculated independently? |
Before signing or launching
Confirm the event, attribution window, validation period, rejection codes, reversal rules, payout currency, tax treatment, payment threshold, payment date and dispute process. Test a sample conversion from click to final status. A payout rate without a defined payable event is not a complete commercial offer.
For publishers, model expected earnings using realistic approval rates and traffic costs rather than headline rates. For advertisers, set the payout ceiling from contribution margin and customer value, not from a competitor's advertised rate.
Editorial note: This article is general educational information, not legal, financial or campaign-specific advice. Verify current rules and the actual campaign terms before acting.
