Hybrid payment model: features and principles of work in PMаffiliates
The affiliate market today provides a lot of opportunities for promoting goods and services. Tracking platforms allows to track any targeted action, be it a click, registration, app installation or purchase.
The pros and cons of the main webmaster collaboration models are relatively well studied. On the one hand, the simpler and cheaper is the target action, so more it is susceptible to fraud on the part of unscrupulous webmasters. But the more affiliates and, as a result, more traffic it attracts.
Payment model where providers receive a negotiated or payer–specified payment rate for every option of service they deliver without regard to quality, outcomes or efficiency. Sometimes also counted as global payment.
The hybrid payment model is the sum of two types: RevShare + CPA. This option means that the user will receive a fixed CPA rate and, at the same time, a percentage of the company’s RevShare profits. In Hybrid affiliate programs, it may not always be listed as a separate payment model.
What is Hybrid payment model
So, what is Hybrid payment model? When using this, the advertiser pays the partner a fixed amount for the targeted operation of the attracted bettor, and then transfers him a percentage of the player’s losses.
Features of the Hybrid payment model
In a casino affiliate program, a hybrid payment gives the opportunity to earn on a percentage of sales and a flat rate per one–time operation. It’s a good option for new and experienced participants. This allows to plans finances in advance: one part will be pledged in case of a new advertising campaign, and the other will remain as profit.
How the Hybrid payment model works
When using the Hybrid payment model, firstly you pay for showings (CPM) or pushes (CPC), and then per actions (CPA). Also there are determined the most profitable (convertible) Internet websites. What means that a minimum budget is initially spent on testing new offers.
If the advertising materials are «well trained», showings or clicks go only on convertible sites, and the materials in rotation attract the cleanest, targeted traffic. At the same time, money is debited from the account only for confirmed targeted actions (making a purchase, registering, submitting an application, etc.) — so both the owner of the offer and the arbitrage specialist clearly understand what they are paying for.
Benefits of working with Hybrid
The first benefits of working is the possibility to track the fact of participation of each member in the chain and distribute the received income in a more equitable way. Bloggers will be able to get their share by CPC, marketplaces and cashback services — by CPS, and the advertising sponsor will receive several times better traffic than working with only one scheme.
Secondly, its provides webmasters with better opportunities to apply their tools — as an example, banners that do not convert well into sales, but most better — in clicks.
The third advantage is that many companies are faced with several marketing tasks at the same time — not only increasing sales, but also rising brand awareness. These advertisers will be able to expand its outreach by joining CPC or even CPM web (pay-per-view) offers, and apply follows data to retargeting and remarketing on their side.
Also, payments solutions provider takes on a majority of the security risk, effectively reducing overall risk.
It’s quite real to take advantages of all of these benefits.
How to make money with the Hybrid payment model
The scheme assumes that certain traffic sources will be able to get paid not for conversions (targeted act), but per press.
So, in conclusion it is important to mention that in Parimatch affiliate program such a scheme includes both a one–time payments and a share of income. Each will be slightly smaller than if chose them directly. But such a model has advantages. One of the most important is the ability to use it as a trial run. Some companies find it suitable in building strong partnerships with advertising spenders. A hybrid strategy puts responsibility on every side. In accordance with common responsibilities, everyone is motivated to support each other in order to earn a lot better together.