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What is the difference between a lead and a sale on ClickBank?
On ClickBank, leads and sales refer to two different types of conversions that affiliates can earn commissions for, and each has its own characteristics in terms of what qualifies the affiliate for payment.
1. Lead
- Definition: A lead is a potential customer who has taken a specific action that demonstrates interest in a product or service but has not yet made a purchase.
- Common Lead Actions:
- Opt-in: The lead provides their email address to receive a free resource, newsletter, or promotional content (e.g., signing up for a free trial or download).
- Registration: The lead fills out a form to register for a webinar, demo, or free consultation.
- Free Trial: The lead signs up for a free trial of a product or service, where the lead might later convert into a paying customer.
- Click-through: In some cases, a lead might be counted simply for clicking on an affiliate link or viewing a specific page.
- Commission Structure:
- For Pay-Per-Lead (PPL) offers, affiliates are paid when they generate leads. They are typically paid a flat rate for each valid lead they bring in.
- Leads usually do not involve a purchase but represent interest and the potential for a sale in the future.
2. Sale
- Definition: A sale occurs when a lead completes a transaction and purchases the product or service being promoted. This is the ultimate goal for many affiliate programs, as it directly translates into revenue.
- Common Sale Actions:
- One-Time Purchase: The customer buys a product or service outright, making a full payment.
- Subscription Purchase: The customer subscribes to a recurring service (e.g., monthly or yearly) or purchases a membership.
- Upsell or Cross-Sell: A lead who initially expressed interest in a product may later purchase additional items (upsells or cross-sells), and the affiliate would receive commission for those sales.
- Commission Structure:
- For Pay-Per-Sale (PPS) offers, affiliates are only paid when a sale is made. The affiliate receives a commission as a percentage of the sale or a fixed amount, depending on the product and affiliate agreement.
- Sales typically involve a higher payout per conversion compared to leads because they represent actual revenue.
Key Differences Between Leads and Sales
| Aspect | Lead | Sale |
|---|---|---|
| Definition | A potential customer who shows interest but has not yet made a purchase. | A customer who makes a transaction and purchases the product. |
| Typical Action | Opt-in, registration, signing up for a free trial, or clicking on an offer. | Completing a purchase or subscribing to a service. |
| Payment Model | Pay-Per-Lead (PPL): Affiliates are paid for each lead they generate. | Pay-Per-Sale (PPS): Affiliates are paid when a sale is completed. |
| Commission Amount | Usually a smaller flat fee per lead. | Typically a higher percentage of the sale or a fixed amount. |
| Nature of Conversion | Shows interest in a product but doesn’t involve money. | Involves a transaction where money is exchanged. |
| Conversion Probability | Leads may eventually convert to sales, but are not guaranteed. | Sales are final conversions that are guaranteed once the transaction is completed. |
Example of a Lead vs. Sale on ClickBank
- Lead: An affiliate promotes a product and a user signs up for a free ebook or webinar. The affiliate is paid for generating the lead, but no money has been exchanged.
- Sale: The same user later attends the webinar and decides to purchase the full product or service. The affiliate earns a commission from the sale, which is a higher payout compared to the lead.
Conclusion:
The key difference between a lead and a sale on ClickBank is that a lead represents a potential customer who has shown interest in a product but has not yet made a purchase, while a sale involves a completed transaction where the customer buys the product. Affiliates are typically paid for leads in Pay-Per-Lead (PPL) offers and for sales in Pay-Per-Sale (PPS) offers. While both are important in affiliate marketing, sales generally yield higher commissions due to the direct revenue generated.
