By Andrew Gowans
The following article is one of a series of articles which focus on
Affiliate, Article and Internet Marketing. All of the articles are based on
real experiences and research done over twenty years as a personal and business
coach. They are also written in response to questions which I have been asked
as well as address common challenges that people have with affiliate marketing,
article marketing, internet marketing or running an online business in
general. I sincerely hope that you find the following information of
value. One idea, one tip, one clue can make all the difference.
How Many Types Of Affiliate Marketing Programs Do You Know?
Affiliate marketing programs have never been as popular before as they
are 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 the
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 merchant 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
affiliate a certain fee whenever the visitor 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.
Affiliate, Article and Internet Marketing in general isn't as easy as
many would have us believe. I fully understand (through my own experiences)
that it is a lot easier said than done. However, you are here, right now,
because you have a desire to improve your business, grow your business, and be
more successful. These articles are here with the sole intention of helping you
to make the whole process a lot easier.
* 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.
Apart 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
 |
| Image courtesy of Stuart Miles at FreeDigitalPhotos.net |
* 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.
NOW is the time!
O.K. you have read the article. Now is the time for action. Without
action, this article adds no value whatsoever to your affiliate success. But
remember, without action, you cannot blame this affiliate marketing article or
any article for that matter. So, take action NOW.
Even if only one piece of advice, one piece of information, one tip
makes a difference, then the whole article has been worth it for all of us.
NOW is the time!
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Article Source: EzineArticles expert=Andrew_Gowans
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