What does KPI mean in affiliate network offers

KPI (Key Performance Indicator) in CPA marketing is the requirements of an advertiser or affiliate network for the quality of traffic, usually written in the offer card. If the webmaster brought clients, but at some stage the lead did not fit into the KPI framework, the webmaster will not receive money.
 

An example of how it works in a real situation

For example: a gambling advertiser is interested in users who will regularly spin slots. He sets a requirement for offers: only active players; and formulates KPI: second deposit no later than one week after FTD.

For example: a gambling advertiser is interested in users who will regularly spin slots. He sets a requirement for offers: only active players; and formulates KPI: the second deposit no later than a week after FTDWebmaster A attracts players through the telegram channel. He communicates directly and promises that he will tell you in what sequence to spin the slots in order to catch drifts or hit the jackpot. All that is required from the user is to deposit $30 (minimum deposit or mindep) and play.

Webmaster B works with Facebook Ads and attracts players to the mobile app using a creative with beautiful animation and welcome bonuses.

What is the result: the player who was brought by web A will make a deposit, turn off, earn nothing. He will realize that he was deceived, and most likely will not return to the online casino. This is low-quality traffic: such players are unprofitable for advertising. He has the right not to pay remuneration.

Web player B after the first deposit will probably make the second, third and so on - he came himself, he was not promised anything. This is quality traffic. It meets the requirements, so will be paid.
 

KPI for offers and why you need them

As is clear from the example above, KPI  are specific conditions necessary to check the quality of traffic and the effectiveness of the webmaster. KPI characteristics depend on the type of offer and vertical:

iGaming. The conversion point here will be FTD (First Time Deposit) - the first replenishment of the account. The KPI is either making a second deposit no later than XX days after the FTD, or fulfilling the baseline - depositing a certain amount by the player, after which he is recognized as active.

Cash-on-Delivery. In COD offers, advertisers can set KPI  for buyback percentage. The lead in this case is counted after the user places an order on the landing page, confirms it with the call center operator. However, not all people who confirmed the order by phone are really in a hurry to redeem it from the courier or at the delivery point.

If the redemption of parcels relative to the number of shipments is below certain values, the advertiser may refuse to pay for a part of the credited leads. Usually, the average percentage of redemption of parcels is not indicated in the offer card and is not reported to the webmaster in any other way. But the advertiser knows the minimum lead-to-purchase ratio at which he starts losing money, not earning. However, buyback % is the KPI for the offer (though hidden).

Gaming. In the vertical of game offers, KPI is set for player activity or additional purchases within the game itself. For example: the advertiser sets requirements for the player: he must not only install the application / game, but also be active on the first, second day and / or other days after installation.

The advertiser is interested in attracting users who will play and/or donate. People who downloaded the game - logged in - logged out - deleted - do not count.

Dating. If the product of the offer is, for example, a dating site for single parents or the elderly, the advertiser will set the KPI for age - the audience is not 18+, but 35-40+.

KPI on CRR (Customer Retention Rate) - customer retention and activity rate. Shows how many repeat or additional purchases the user makes. Some affiliate programs require that at least 5-10% of all attracted users continue to use the application. This was created to keep the service up to date.

For example: certain dating applications offer their users a number of paid features - VIP statuses, closed accounts, subscriptions, and more. The advertiser sets a condition for the webmaster to attract as many people as possible who are ready to buy additional services.
 

Comment from the editors of AffJournal

It seems that such requirements only complicate the work of webmasters, because it is more difficult to bring traffic that meets certain criteria. On the other hand, no advertiser wants to pay for “dummy leads” or fraud. At the same time, do not forget: even with complex KPI, when paying for leads using the CPA model, the advertiser still risks, because the payout for the offer is always higher than the advertiser's actual earnings at the time of this very payout.