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The Different Types Of Affiliate Marketing

The Different Types Of Affiliate Marketing 


Affiliate marketing programs has never been as a popular attraction as it is today. Why? There can be a number of reasons. The most evidence  evidenceev  reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see unmistakably that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy method for earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an elective method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates the same, affiliate marketing is now considered as a primary 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 same? Are the benefits the same? Or are there affiliate marketing programs that work superior to the others?

There are actually various types or classes of affiliate marketing, and the number of types will rely upon how one will classify them. The most basic affiliate 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 affiliate marketing for affiliates with small websites, and probably the easiest path for them to earn money. In this affiliate marketing type, the merchant pays his affiliate at whatever point a visitor is referred to his site, that is at whatever point someone clicks through the merchant's banner or text ads. The affiliate gets paid a specific amount regardless of whether the visitor he referred does not purchase anything from the merchant's site. However, run of the mill fees for PPC affiliate programs are small, usually not exceeding a dollar for each click.

Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most worthwhile type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate at whatever point his referral translates into an action—that is at whatever point 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 rewarding type for the committed affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate 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 affiliate marketing, the merchants pay the affiliate a specific fee at whatever point 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 affiliates in a pay-per-click affiliate program.

o Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who depend on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid at whatever point the visitor he referred to the merchant's site fills up an application form or any similar form identified with the business of the company. Compensation for this type of affiliate 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 affiliate marketing, a lot of other affiliate marketing types exist. On the off chance that the classification is based on the profundity of the affiliate network, it very well may be classified as single-level, two-level, and multi-level affiliate marketing. There is also another type of affiliate marketing that pays the affiliate 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 affiliate marketing are based on the various levels or tiers in the affiliate network by which payments are made. In a single-level affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (for example PPS< PPL, and PPC) fall under the single-level classification.

In two-level affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on each traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-level affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in various tiers in the affiliate network.

Residual Income Affiliate Marketing

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

The diverse affiliate marketing types would virtually work differently for merchants and affiliates the same, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

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