Used in a broad sense, an affiliate program is any type of revenue sharing program where an affiliate web site receives a portion of income for delivering sales, leads, or traffic to a merchant web site. In a narrow sense, affiliate programs are commonly considered those programs that use a pay-per-sale model. Also termed associate, partner, referral, reseller, or sponsor programs.
An amount of income you receive for referring a sale, lead or click to a merchant's site.
A program where you receive a commission each time a merchant's ad or link is displayed on your site. Pay-per-impression generally offers the lowest commissions, but a nearly 100% conversion ratio since a visitor merely has to view the ad to earn you a commission, often resulting in the highest earnings potential. Pay-per-impression programs are generally measured in CPMs (see below) and form the standard of banner advertising for larger sites.
CPM can also be calculated for pay-per-sale, pay-per-lead and pay-per-click programs by using the following formula: Amount Earned from Program/# of Ad Impressions/1000