The compensation for affiliates is generally based on cost per click
, cost per lead or cost per sale. Cost per click & cost per lead are usually paid in terms of a flat fee which is awarded to the affiliate each time an web user either basically clicks through the banner ad on his website or performs a specific action after clicking through the ad. Cost per sale may result in the affiliate being awarded a flat fee or a percentage of the sale depending on the agreement between the business owner & the affiliate