The Different Of Affiliate Marketing

Eugenijus Sakalauskas

 Have you ever wondered if what you know about affiliate is  accurate? Consider the following paragraphs and compare  what you know to the latest info on affiliate.

 Affiliate marketing programs has 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 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.

-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.

The day will come when you can use something you read about here  to have a beneficial impact. Then you'll be glad you took the  time to learn more about affiliate.

Eugenijus Sakalauskas Owner PNP.com Subscribe to my FREE e-course "Affiliate Marketing for everyone" Send blank: mailto:pnpaffiliate@getresponse.com or visit http://www.pluginnetproefit.com and get 18+ free bonuses

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