The payout model you choose shapes your entire network — which affiliates you attract, what kind of fraud you’ll see, and how your unit economics work. Here’s a breakdown of the four models that cover 90% of affiliate programs.

CPA — Cost per Acquisition

The affiliate earns a fixed amount when a user completes a specific action. That action is usually a purchase, but it can also be a free trial signup, an app install, or an account creation.

Best for: SaaS, e-commerce, app installs, subscription boxes

Typical range: $5 — $500 depending on product value

Pros:

• Simple to understand and explain to affiliates
• Predictable cost per customer
• Easy to model ROI

Cons:

• Fixed payout means you’re exposed if AOV varies widely
• Affiliates may chase easy low-quality conversions if your definition of “acquisition” is loose

When to use it: When you have a well-defined conversion event and a consistent customer lifetime value. Most networks start here.

CPL — Cost per Lead

The affiliate earns when a user submits a form or opts in. No purchase required.

Best for: Insurance, finance, real estate, B2B SaaS

Typical range: $2 — $50

Pros:

• Lower payout = more affiliates willing to promote
• Good for products with long sales cycles

Cons:

• Lead quality varies wildly by traffic source
• You’ll need to define “valid lead” precisely (real email? confirmed phone?) or disputes pile up

Fraud risk: Higher than CPA. Form-fill fraud is common. Require email verification or a secondary qualification step.

CPS — Cost per Sale (Revenue Share %)

The affiliate earns a percentage of each sale they refer.

Best for: E-commerce with variable cart sizes, marketplaces

Typical range: 5% — 30%

Pros:

• Aligns incentives — affiliates earn more when customers spend more
• Naturally self-corrects for refunds (if you implement refund clawbacks)

Cons:

• Harder to promote — affiliates can’t predict their EPC as easily
• Requires sharing revenue data with affiliates, which some advertisers resist

RevShare — Recurring Revenue Share

The affiliate earns a percentage of recurring payments for the lifetime of the customer they referred.

Best for: SaaS subscriptions, membership products

Typical range: 20% — 40% of MRR per referred customer

Pros:

• Creates the most loyal affiliates — they have skin in the game long-term
• Top affiliates will prioritize your program over CPA alternatives

Cons:

• Cash flow intensive — you’re paying out for months before the customer becomes profitable
• Complex to manage: cancellations, upgrades, downgrades all affect commission

Choosing the right model

Scenario	Recommended model
SaaS with $50-500 MRR	RevShare (20-30%) or CPA
E-commerce, fixed products	CPA or CPS
Insurance / finance leads	CPL with lead quality validation
Marketplace with variable GMV	CPS
High-volume mobile apps	CPA (flat per install or registration)

Most mature networks run multiple models simultaneously — different advertisers get different structures. The key is being consistent within each advertiser relationship and making the payout terms clear to affiliates upfront.

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OfferMesh supports CPA, CPL, CPS, and RevShare out of the box, with per-affiliate payout overrides if you need to negotiate custom rates with top performers. Start free →