Affiliate marketing programs has never been as popular before as it is today. Why? There can be a variety of factors. The most probable factor, however, might be that the benefits of affiliate marketing have ended up being clearer to a great deal of individuals 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 market their products at a lower cost.
The affiliates, on the other hand, sees affiliate marketing as an easy method of making profits 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 people’s outlook about it changed. No longer is affiliate marketing thought about today as an alternative method for the merchant to market his products, or as a source of extra earnings 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 very same? Are the advantages the exact same? Or are there affiliate marketing programs that work better than the others?There are really different types or classes of affiliate marketing, and the variety of types will depend upon 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(PPC)PPC is the most popular type of affiliate marketing for affiliates with small websites, and most likely the simplest method for them to generate income.
In this affiliate marketing type, the merchant pays his affiliatewhenever a visitor is described his site, that is whenever someone clicks through the merchant’s banner or text advertisements. The affiliate gets paid a specific quantity even if the visitor he referred does not acquire anything from the merchant’s site. However, common costs for Pay Per Click affiliate programs are little, generally not surpassing a dollar for every single click.
• Pay Per Efficiency (PPP)PPP affiliate marketing is the most popular among merchant and is also the most financially rewarding type for the affiliates. In this kind of affiliate program, the merchant just pays the affiliate whenever his referral equates into an action– that is whenever the visitor he has referred in fact purchases something from the merchant’s site or when the visitor becomes a lead.
This indicates a lot of cost savings for the merchant. On the other hand, it ends up being the most profitable type for the devoted affiliate, for commissions in PPP affiliate marketing normally comes 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< period class=”Apple-tab-span” design =”white-space: pre “>
Pay Per Sale(PPS) In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a particular charge whenever the visitor he has actually referred to the merchant’s website really purchases something from the merchant’s website. Affiliates are often paid on commission basis, although other merchants would opt to pay a repaired cost
.However no matter what the basis of the charge is, it is normally higher than the cost paid to affiliates in a pay-per-click affiliate program.
o< span class=”Apple-tab-span”style=” 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 typically utilized by insurance and financing companies and other companies who depend on leads for their company to grow. In this kind of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s website fills up an application form or any comparable form related to business of the company. Payment for this kind of affiliate marketing is based upon a fixed fee whose rates approximate that of the fixed fee in the PPS type.Aside from these 3 specific types 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 actually referred purchases something from the merchant’s website.
• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing These kinds of affiliate marketing are based on the various levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are just paid based on the direct sales or traffic he has described the merchant.