Affiliate marketing programs has never ever been as popular before as it is today. Why? There can be a number of factors. The most possible factor, however, might be that the advantages of affiliate marketing have actually ended up being clearer to a great deal 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 opportunity 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 producing websites.
Just as the appeal of affiliate marketing has moved into higher heights, so has the individuals’s outlook about it changed. No longer is affiliate marketing considered today as an alternative technique for the merchant to advertise his products, or as a source of additional earnings for the affiliates. For merchants and affiliates alike, affiliate marketing is now thought about as a primary source of earnings and revenues.
So the question now is exactly what kind of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the advantages the exact same? Or exist affiliate marketing programs that work better than the others?There are in fact various 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 2 categories: pay-per-click (Pay Per Click), and pay-per-performance(PPP ).
• Pay Per Click(PPC)Pay Per Click is the most popular type of affiliate marketing for affiliates with little 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 referred to his site, that is whenever somebody clicks through the merchant’s banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not acquire anything from the merchant’s website. Common charges for Pay Per Click affiliate programs are little, normally 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 financially rewarding type for the affiliates. In this kind of affiliate program, the merchant only pays the affiliate whenever his recommendation translates into an action– that is whenever the visitor he has actually referred in fact buys something from the merchant’s site or when the visitor ends up being a lead.
This suggests a lot of savings for the merchant. On the other hand, it ends up being the most profitable type for the dedicated affiliate, for commissions in PPP affiliate marketing generally is available in the variety of 15% to 20%of the real product sales.
Pay-per-performance affiliate marketing can be more classified into 2 popular types:
pay-per-sales(PPS) and pay-per-lead (PPL). o< period 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 particular charge whenever the visitor he has actually described the merchant’s site really buys something from the merchant’s website. Affiliates are typically paid on commission basis, although other merchants would choose to pay a repaired fee
.No matter what the basis of the fee is, it is generally 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 minor variation of the PPS type and is typically used by insurance coverage and finance companies 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 website fills an application or any comparable form related to business of the company. Payment for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed charge in the PPS type.Aside from these three particular types of affiliate marketing, a lot of other affiliate marketing types exist.
If the classification is based upon the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is likewise another kind of affiliate marketing that pays the affiliate each time the client he has actually referred purchases something from the merchant’s website.
• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing These types of affiliate marketing are based upon 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 described the merchant.