Lcm Agreement

An LCM agreement, also known as a Last Click Model agreement, is a marketing attribution model used to determine the value of each touchpoint in a customer`s journey. In this article, we`ll explore what an LCM agreement is, how it works, and why it`s important for businesses today.

What is an LCM agreement?

An LCM agreement is a contract between a business and its advertising partners that outlines how the partners will be compensated based on the customer`s last click. In other words, the partner who is responsible for the last click that leads to a sale will receive most or all of the commission.

How does an LCM agreement work?

Let`s say you`re a business that sells a product online, and you`ve partnered with several affiliates to help promote your product. When a customer clicks on one of your affiliate`s links and makes a purchase, the commission is paid to the affiliate responsible for the last click.

For example, if a customer first clicks on an ad from Affiliate A, then clicks on an ad from Affiliate B before making a purchase, Affiliate B will receive the commission because their ad was the last one clicked.

Why is an LCM agreement important?

An LCM agreement is important for businesses because it helps them accurately attribute value to each touchpoint in the customer`s journey. This allows businesses to better understand which marketing channels are driving the most sales and adjust their campaigns accordingly.

Additionally, an LCM agreement can help businesses avoid paying commissions to partners who may be driving traffic but not contributing to actual sales. This ensures that the business is only paying for results and not wasting money on ineffective marketing efforts.

In conclusion, an LCM agreement is an essential tool for businesses that want to accurately attribute value to each touchpoint in the customer`s journey and optimize their marketing campaigns. By working with their advertising partners to agree on a fair compensation model, businesses can ensure they`re only paying for results and maximizing their return on investment.