“Pay per click” means different things depending on who you ask. To a business running Google Ads, it is a way to buy traffic. To an affiliate marketer, it can be a way to earn money from someone else’s ads. And “pay per action” affiliate deals add another layer again.

This guide explains pay per click affiliate marketing in plain English: what pay per click means, how PPC affiliate programmes work, how they differ from pay per action, and what a business should check before letting affiliates run paid ads for its brand.

What does pay per click mean?

Pay per click (PPC) is an advertising model where the advertiser pays each time someone clicks their ad, rather than paying for the ad to be shown. Google Ads search campaigns are the best-known example: you choose the searches you want to appear for, and you pay when someone clicks through to your website.

The appeal is simple. You pay for visits, not just views, and you can see exactly what each click costs. Our guide on what PPC is covers the basics for businesses.

What is affiliate marketing?

Affiliate marketing is where a business pays other people or companies (affiliates) for sending it customers. The affiliate promotes the business, usually with a tracked link, and earns a reward when that promotion leads to a result.

Affiliates can be bloggers, review sites, voucher sites, comparison sites, social media creators or specialist marketers who run paid ads.

What is pay per click affiliate marketing?

The phrase is used in two ways, which is where the confusion comes from:

1. Affiliates paid per click

Some programmes pay the affiliate a small amount each time someone clicks their link and lands on the business’s website, whether or not they buy. This is rare now, because it is easy to abuse with low-quality or fake clicks.

2. Affiliates using PPC ads to drive sales

More commonly, “PPC affiliate marketing” means an affiliate buys pay-per-click ads (on Google, Microsoft Ads or social platforms) and sends that traffic through their affiliate link. They pay for the clicks themselves and make a profit if the commission they earn is higher than their ad spend.

Pay per click vs pay per action affiliate deals

Most affiliate programmes today are pay per action (also called cost per action or CPA). The affiliate only earns when the visitor takes a specific action:

• Pay per sale: a percentage or fixed amount when someone buys.
• Pay per lead: a fixed amount when someone fills in a form, books a call or signs up.
• Pay per install: for apps, when someone downloads and opens it.

For the business, pay per action is much safer. You only pay when you get something of value. Pay per click puts the risk on the business, because clicks do not always turn into customers.

How a PPC affiliate programme works

1. The business sets up an affiliate programme, either in-house or through an affiliate network.
2. Affiliates apply and agree to the programme’s terms.
3. Each affiliate gets a unique tracking link.
4. The affiliate promotes the business, which may include running their own paid ads.
5. When a visitor clicks the link and takes the agreed action, the sale or lead is tracked to that affiliate.
6. The business pays the commission, usually monthly, after checking for returns, cancellations and fraud.

What businesses should watch out for

Affiliates running paid ads can bring in genuine new customers. But without clear rules, they can also cost you money. These are the risks to manage.

Affiliates bidding on your brand name

This is the big one. An affiliate bids on your business name in Google Ads, appears above your own listing, and takes the commission on customers who were already searching for you and would have found you anyway. You end up paying commission on sales you would have made for free, and possibly competing against your own affiliate in the ad auction.

Our advice is simple: ban brand bidding in your affiliate terms. That includes your business name, misspellings and variations, and your domain. Check regularly that affiliates are sticking to it.

Misleading ads

Affiliates may write ads that overpromise, make claims you cannot back up or break advertising rules. In the UK, the business can still face complaints about ads that promote it, so set clear rules on what affiliates can say.

Low-quality traffic

Some affiliates buy cheap traffic that rarely converts, or use voucher and cashback tactics that grab the credit at the last moment. Pay per action deals and good tracking help protect you.

Paying twice

If you run your own Google Ads as well, a customer might click your ad and an affiliate’s link before buying. Decide in advance how you handle attribution, so you do not pay for the same customer twice.

Rules to include in your affiliate terms

• No bidding on your brand name, misspellings or domain.
• No direct linking from paid ads without permission, or only with approved landing pages.
• Approved claims, offers and wording only.
• No use of your logo or brand in display URLs or ad text without permission.
• No incentivised or fake clicks, leads or sales.
• The right to withhold commission and remove affiliates who break the rules.

Is pay per click affiliate marketing right for your business?

An affiliate programme can work well if you have:

• An online product or service with clear, trackable sales or leads.
• Margins that can cover a commission.
• Time to recruit, approve and monitor affiliates.

For many small, local service businesses, running your own well-managed Google Ads campaign gives more control than relying on affiliates. If you go down the agency route, our guide on how to choose a PPC agency will help. For higher-value products, see our high-ticket affiliate marketing guide.

Frequently asked questions about PPC affiliate marketing

What is the definition of pay per click?

Pay per click is an advertising model where the advertiser pays each time someone clicks their ad, rather than each time it is shown.

What is pay per action in affiliate marketing?

Pay per action means the affiliate only earns commission when the visitor completes a specific action, such as a purchase, sign-up or enquiry.

Can affiliates run Google Ads?

Yes, if the programme allows it and the ads follow Google’s policies. Many businesses allow it with conditions, such as no brand bidding.

Should I let affiliates bid on my brand name?

Usually not. You end up paying commission on customers who were already looking for you.

How much commission do affiliates earn?

It varies widely by industry and product, from a small percentage on retail sales to a fixed fee for each qualified lead.

Understand the model before you pay for it

Pay per click affiliate marketing can bring in new customers, but only with the right deal and the right rules. Favour pay per action over pay per click, ban brand bidding, approve what affiliates can say and keep a close eye on where your sales really come from.

If you would rather run paid search yourself, our Google Ads team can help. Get in touch, or find more practical guides on the Delivered Social website.