The Different Types Of Affiliate Marketing

Getting information about affiliate marketing never proved to be easier, now that this article has been written. Read on to learn more

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  marketing have become clearer to a lot of people now than they were before.

We have actually followed a certain pattern while writing on affiliate marketing. We have used simple words and sentences to facilitate easy understanding for the reader.

Today, both the merchants and the s can see clearly that  marketing can work for both of them.  The merchant sees  marketing today as the chance to advertise their products at a lower cost.  The s, on the other hand, sees  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  marketing has shifted into greater heights, so has the people’s outlook about it changed.  No longer is  marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the s.  For merchants and s alike,  marketing is now considered as a main source of profits and revenues.

So the question now is what type of  marketing will work best for you?  Are all  marketing programs the same?  Are the benefits the same?  Or are there  marketing programs that work better than the others?

There are actually different types or classes of  marketing, and the number of types will depend on how one will classify them.  The most basic  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  marketing for s with small websites, and probably the easiest way for them to earn money.  In this  marketing type, the merchant pays his  whenever a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text ads.  The  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  programs are small, usually not exceeding a dollar for every click.

•    Pay Per Performance (PPP)

PPP  marketing is the most popular among merchant and is also the most lucrative type for the s.  In this type of  program, the merchant only pays the  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 , for commissions in PPP  marketing usually comes in the range of 15% to 20% of the actual product sales.

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

o    Pay Per Sale (PPS)

In a pay-per-sale type of  marketing, the merchants pay the  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 s in a pay-per-click  program.

o    Pay Per Lead (PPL)

Now while reading about affiliate marketing, don’t you feel that you never knew so much existed about affiliate marketing? So much matter you never knew existed.

The pay-per-lead type of  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  marketing, the  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  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  marketing, a lot of other  marketing types exist.  If the classification is based on the depth of the  network, it can be classified as single-tier, two-tier, and multi-tier  marketing.  There is also another type of  marketing that pays the  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  marketing are based on the different levels or tiers in the  network by which payments are made.  In a single-tier  marketing program, the s are only paid based on the direct sales or traffic he has referred to the merchant.  All the previously mentioned  marketing types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.

•    In two-tier  marketing programs, the  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 s who joined the  program through his recommendation.  Multi-tier  marketing works the same way, although the  gets additional commission for a wider number of s in different tiers in the  network.

•     Residual Income Affiliate Marketing

In residual income  marketing, the  gets paid not only once for every customer he has referred to the merchant’s site.  Rather, the  is also paid whenever the customer he has referred returns to the site and purchase another product.  Compensation for such type of  marketing is based on either sales percentage commission or fixed fee basis.

The different  marketing types would virtually work differently for merchants and s alike, and each would generally have their own list of benefits.  Which type of  marketing will work best for you?  It is not really for me to tell.  Rather, it is for you to choose which type of  marketing program will suit your needs and characteristics best.
Learn to accept things as they are with affiliate marketing. Only through this will you learn the true value of affiliate marketing.

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