"Cost Per Click (CPC)" – Affiliate Marketing Glossary
A payment model where affiliates earn money each time a user clicks on their affiliate link.
In the Cost Per Click (CPC) model, affiliates are paid based on the number of clicks their links or ads receive, regardless of whether a sale is made. This model shifts some risk to the merchant, as clicks do not guarantee conversions, but provides more predictable income for affiliates.
CPC encourages affiliates to generate high traffic volumes and optimize for click-through rates. However, merchants must monitor the quality of clicks to ensure they are receiving valuable traffic that has genuine purchase intent. CPC rates typically range from a few cents to several dollars depending on the industry and competition.
Effective CPC campaigns require careful keyword research, audience targeting, and content optimization. In competitive SaaS markets, CPC rates can be particularly high due to substantial customer lifetime values. Quality scoring and fraud detection are essential components of successful CPC programs.
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