Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most likely factor, however, could be that the benefits of affiliate marketing have actually ended up being clearer to a great deal of individuals now than they were before.
Today, both the merchants and the affiliates can see plainly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the possibility to promote their products at a lower cost.
The affiliates, on the other hand, sees affiliate marketing as a simple method of making revenues online by doing exactly what they like most, and that is by developing websites.
Just as the popularity of affiliate marketing has moved into higher heights, so has the individuals’s outlook about it altered. Not is affiliate marketing considered today as an alternative technique for the merchant to advertise his items, or as a source of extra earnings for the affiliates. For affiliates and merchants alike, affiliate marketing is now considered as a primary source of revenues and revenues.
So the concern now is what kind of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the very same? Or are there affiliate marketing programs that work much better than the others?There are in fact various types or classes of affiliate marketing, and the variety of types will depend on how one will classify them.
The most basic affiliate marketing programs, nevertheless, falls under two classifications: pay-per-click (PPC), and pay-per-performance(PPP ).
• Pay Per Click(Pay Per Click)Pay Per Click is the most popular type of affiliate marketing for affiliates with small websites, and most likely the most convenient way for them to make money.
In this affiliate marketing type, the merchant pays his affiliatewhenever a visitor is referred to his website, that is whenever somebody clicks through the merchant’s banner or text advertisements. If the visitor he referred does not acquire anything from the merchant’s site, the affiliate gets paid a particular quantity even. Nevertheless, common fees for Pay Per Click affiliate programs are little, typically not going beyond a dollar for each click.
• Pay Per Performance (PPP)PPP affiliate marketing is the most popular amongst merchant and is also the most profitable type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his recommendation translates into an action– that is whenever the visitor he has referred really buys something from the merchant’s site or when the visitor becomes a lead.
This implies a lot of savings for the merchant. On the other hand, it becomes the most rewarding type for the devoted affiliate, for commissions in PPP affiliate marketing typically is available in the variety of 15% to 20%of the real product sales.
Pay-per-performance affiliate marketing can be further categorized into 2 popular types:
pay-per-sales(PPS) and pay-per-lead (PPL). o< span class=”Apple-tab-span” style =”white-space: pre “>
Pay Per Sale(PPS) In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a specific charge whenever the visitor he has described the merchant’s website actually buys something from the merchant’s website. Affiliates are typically paid on commission basis, although other merchants would choose to pay a fixed cost
.But no matter what the basis of the fee is, it is typically higher than the cost paid to affiliates in a pay-per-click affiliate program.
o< span class=”Apple-tab-span”design=” white-space: pre;”> Pay Per Lead (PPL )The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is frequently used by insurance and financing business and other companies who count on leads for their business to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills an application form or any comparable form associated to business of the business. Settlement for this type of affiliate marketing is based upon a fixed cost whose rates approximate that of the fixed charge in the PPS type.Aside from these three particular kinds of affiliate marketing, a great deal 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 consumer he has referred purchases something from the merchant’s website.
• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing These kinds of affiliate marketing are based upon the various 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 actually described the merchant.