The Different Types Of Online Affiliate Marketing

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Affiliate marketing programs has never been as popular before as it is today. Why? There can be a variety of reasons. The most probable factor, nevertheless, could be the truth that the advantages of affiliate marketing have become 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 items at a lower cost. The affiliates, on the other hand, sees affiliate marketing as a simple method of making profits online by doing what they like most, and that is by producing sites.

Just as the popularity of affiliate marketing has shifted into higher heights, so has the people’s outlook about it altered. No longer is affiliate marketing considered today as an alternative technique for the merchant to market his products, or as a source of additional earnings for the affiliates. For merchants and affiliates alike, affiliate marketing is now becoming a primary source of revenues and earnings.

The concern now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the very same? Are the advantages 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 number of types will depend upon how one will categorize them. The most basic affiliate marketing programs, nevertheless, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

Pay Per Click (PPC)

Pay per click is the most popular type of affiliate marketing for affiliates with little sites, and most likely the simplest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his website, that is whenever somebody clicks through the merchant’s banner or text ads.

Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is likewise the most rewarding type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral equates into an action– that is whenever the visitor he has referred actually buys something from the merchant’s website or when the visitor becomes a lead. This indicates a great deal of savings for the merchant. On the other hand, it ends up being the most lucrative type for the devoted affiliate, for commissions in PPP affiliate marketing usually is available in the series of 15% to 20% of the real item sales.

Pay-per-performance affiliate marketing can be further categorized into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

Pay Per Sale (PPS)

In a pay-per-sale kind of affiliate marketing, the merchants pay the affiliate a particular fee whenever the visitor he has actually referred to the merchant’s site really buys something from the merchant’s website. Affiliates are typically paid on commission basis, although other merchants would decide to pay a repaired fee. But no matter what the basis of the charge is, it is generally higher than the charge paid to affiliates in a pay-per-click affiliate program.

Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a minor variation of the PPS type and is often used by insurance and financing 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 up an application or any similar form related to business of the business. Payment for this kind of affiliate marketing is based upon a repaired charge 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 category 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 likewise another type of affiliate marketing that pays the affiliate each time the client he has referred purchases something from the merchant’s site.

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 only paid based on the direct sales or traffic he has actually described the merchant. All the previously pointed out 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 just paid for the direct traffic or sales that he refers to the merchant’s site, but likewise on every traffic or sales referred by numerous other affiliates who joined the affiliate program through his suggestion. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a broader variety of affiliates in various tiers in the affiliate network.

Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate makes money not only as soon as for each customer he has actually described the merchant’s website. Rather, the affiliate is likewise paid whenever the customer he has actually referred go back to the site and purchase another item. Payment for such kind of affiliate marketing is based on either sales percentage commission or fixed cost basis.

The various affiliate marketing types would essentially work differently for merchants and affiliates alike, and each would usually have their own list of advantages. Which type of affiliate marketing will work best for you?