.: What Are The Different Types Of Affiliate Marketing?
Category:Home / Internet Marketing / Affiliate Programs
Affiliate marketing programs have never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.
Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.
Just as the popularity of affiliate marketing has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.
So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than others?
There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).
Pay Per Click (PPC)
PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.
Pay Per Performance (PPP)
PPP affiliate marketing is the most popular among merchants and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action—that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.
Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).
Pay Per Sale (PPS)
In a pay-per-sale type of affiliate marketing, the merchants pay the affiliates a certain fee whenever the visitors he has referred to the merchant's site actually buys something from the merchant's site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.
Pay Per Lead (PPL)
The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant's site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.
Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant's site.
Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing
These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (i.e. PPS, PPL, and PPC) fall under the single-tier classification.
In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.
Residual Income Affiliate Marketing
In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.
The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.
Article keywords: affiliate marketing programs, types of affliliate marketing
Article Source: http://www.articles32.com
To get the Best Internet Home Business,
Work at Home Ideas, Opportunities and Training
Visit Us Today!!
Get A Money Making Website Just For You That's 100%
Ready To Take Orders And Pull In Massive Residual
Profits Today!
.: New Affiliate Programs Articles
1). 5 Ways to Boost Your Affiliate Checks
Promoting affiliate programs is one of the most rewarding and easy ways to earn money online. Regardless of your knowledge or experience in internet marketing, you can easily earn money online with affiliate programs.
2). Simple Money Machines-An Easy Way To Set Up Affiliate Sites
Simple Money Machines is a great way to get started making money on the internet. It allows you to set up a website with an autoresponder and track your traffic all in one system and all in a very short time, even for those that are technically challenged.
3). The Top Internet Business
When looking for the top internet business you will want the one that has proven results as well as the willingness to not only share the information that worked to help that site grow,
4). Promote The Right Affiliate Products For Big Bucks
Choosing the "right" affiliate products to market can make or break your marketing efforts. This article shows you how to go about finding the right products to make you BIG BUCKS!
5). Blast Your Income with a Simple Affiliate Website
Affiliate Marketing can be confusing and stressful!However, this article reveals simple ways to make affiliate marketing enjoyable and financially rewarding.
6). Affiliate Marketing - Why Creating Your Own Website is Crucial to Your Success
Why creating you own website is crucial to your success as an affiliate marketer.
7). Affiliate Websites - Building A Money Making Site
Affiliate website designing is a process that when done right, can help you earn more money from your site.
.: Top Affiliate Programs Articles
1). Generate more Pasive Income!! SuperWebSecrets
This is a system to generate money! It has been tested over and over again by many people all over the world. The system guarantee that you will make at least $500 in your first week, $1000 in your second week, $2000 on your third week and $4000 in your fourth week, making a total of $7500 in your first month!
All it takes is just 5 to 10 minutes of your time each day to set the system in motion.
2). Residual Affiliate Programs – 4 Reasons To Promote For Long Term Income
Residual affiliate programs would indeed pay at a lower rate, but merchants offering such programs would generally pay you regular and ongoing commissions for a single affiliate initiated sale.
3). Affiliate Programs - Discover How To Find the Right Products
Of course, you can promote your own products or services if you have ones. This is the best option to succeed because this way you receive a 100% profit of what you sell. Another way is to buy resale rights, promote the products using AdWords and keep all the profits too.
However, majority of us do not have our own products or services. Therefore, we can join various affiliate programs and promote them.
4). Making Money Online with a Website
Affiliate programs
5). Ten Steps to Boost Your Affiliate Commissions Today
Interested in boosting your affiliate commissions? There isn't one "magical" secret to increase your affiliate commissions, but here are some simple steps you can take to make more money through affiliate programs right now.
1. Capture e-mail addresses with an "opt-in" list before sending your visitor to the merchant vendor web site.
2. Write an un-biased review article about the product or program you are promoting.
6). What is the Top Online Business Strategy?
What is the Top Online Business Strategy? Apparently it is wasting a lot time and money getting burned by get rich scams. But it doesn’t have to be that way.
I became SICK & TIRED of these so called internet marketing gurus using the same old story to promote their online money making products. They claim to have wasted a lot of time and tons of money trying every get rich quick scam on the internet.
7). Making Money Online with Affiliate Programs
Earning With Affiliate Programs
You've probably heard of affiliate programs. Companies use affiliate pograms to sell their products. The most common way for making money online with affiliate programs is through posting a link on your website. When a customer clicks on that link and buys the product, you earn a commission.
There are many advantages to making money online with affiliate programs.