How many types of affiliate marketing programs are there
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Home Page > Internet > Affiliate Programs > How many types of affiliate marketing programs are there
How many types of affiliate marketing programs are there
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How many types of affiliate marketing programs are there
By: Virgil Morse
About the Author
To learn more about Different affiliate marketing and earn money visit our affiliate Marketing blog http://mikemyers.me/different-types-of-affiliate-marketing/
(ArticlesBase SC #1679337)
Article Source: http://www.articlesbase.com/ – How many types of affiliate marketing programs are there
Different kinds of Affiliate Marketing
The advantages of affiliate marketing are far more pronounced today than ever before. This is one of the most important reasons for the approval for affiliate marketing among so many net marketers.
Latest web technology has enabled the affiliate marketers to get their stats and income figures the instant they make an affiliate sale. It is now possible to use firms like PayPal for payment and invoice processing. This has highly curtailed the time that an affiliate marketer needs to hang about for his payments to get collected from the merchants.
Both the affiliates and the merchants have now realized that affiliate marketing is effective for both. The merchants understand affiliate marketing as a chance to advertise their products at a much lesser cost. On the other hand, the affiliates see affiliate marketing as a basic way of earning profits online by doing something which they like most, and that’s web publishing.
Just as the admiration for affiliate marketing has gone into overdrive, likewise the lookout of folks has changed for the better about affiliate marketing. Affiliate marketing is no longer considered as a secondary system of marketing by the merchants, or as an additional income source by an affiliate marketer. For merchants and affiliates alike, affiliate marketing is now considered as a major source of profits and income.
We now have a need to research what type of affiliate marketing will work the best for any person? Are there any differences in affiliate marketing programs? Are the paybacks from these programs the same? Which are those affiliate marketing programs that work better than the others?
There are really types of affiliate marketing, and the types will depend upon how you’re going to classify them. The primary classification of affiliate marketing programs falls into two classes : pay-per-click ( PPC ), and pay-per-performance ( PPP ).
one. Pay-per-click ( pay per click ) – PPC is the most well liked kind of affiliate marketing for affiliates with small websites, and doubtless the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate each time a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text adverts. The affiliate gets paid a certain amount even if the visitor he referred doesn’t purchase anything from the merchant’s site. characteristic fees for pay-per-click affiliate programs are tiny, often not exceeding a greenback for each click.
two. Pay Per Performance ( PPP ) – PPP affiliate marketing is well liked among merchants and is also the nicest type for the affiliates. In this type of affiliate program, the merchant pays the affiliate only when his referral converts into an action – that’s whenever the visitor he has referred really buys something from the merchant’s site or when the visitor becomes a lead. This means that the merchant saves a lot on his own direct marketing efforts. On the other hand, this kind of affiliate marketing becomes financially most rewarding for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the product sales. And, in the case of e-products or e-goods, the affiliate commission can go as high as seventy – 75% of the sale cost.
Pay-per-performance affiliate marketing can further be classified into two types : pay-per-sales ( PPS ) and pay-per-lead ( PPL ). Both these are highly popular.
a ) Pay Per Sale ( PPS ) – In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant’s site actually buys something from the merchant’s site. Affiliates are frequently paid on commission basis, although other merchants would decide to pay a fixed fee. But no matter what the basis of the charge is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.
b ) Pay Per Lead – The pay-per-lead type of affiliate marketing is a slight change of the PPS type and is often used by insurance and finance companies and other firms who rely 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 site fills up an application document or any similar form related to the business of the company. Compensation for this sort of affiliate marketing relies on a fixed fee whose rates approximate that of the fixed fee in the PPS type. Generally, the sales conversion rate is the highest in the case of PPL, because, the visitor isn’t needed to buy anything but only complete a non-financial exchange, like, filling up an application form, subscribing to a newsletter, etc .
Aside from these three categorical types of affiliate marketing, lots of other affiliate marketing types exist. If the classification is based primarily on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There’s also another kind of affiliate marketing that pays the affiliate each time the buyer 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 primarily on the different levels or tiers in the affiliate network by which payments are made.
A ) Single Tier – In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All of the formerly mentioned affiliate marketing types ( i.e. PPS, PPL, and PPC ) fall under the single-tier classification.
B ) two Tier – In two-tier affiliate marketing programs, the affiliates aren’t only paid for the direct traffic or sales that he brings to the merchant’s site, but also on every traffic or sales referred by other affiliates who joined as sub-affiliate of the above affiliate marketer.
C ) Multi Tier – Multi-tier affiliate marketing works the same way, although the affiliate gets extra commission for more number of levels of affiliates in different tiers in the affiliate network.
D ) Residual revenue associate promoting – In this kind, aside from the affiliate getting money for every client he has referred to the merchant’s site, the affiliate is also paid whenever the customer he has referred goes back to the merchant’s site and purchases another product. Commission for such sort of affiliate marketing is based on either proportion of sales or based mostly on fixed fee.
Each affiliate marketer reveals that these different affiliate marketing strategies work differently for every one of them. For instance, multi tier affiliate marketing, also called Multi-Level promoting ( MLM ) is a highly tough sort of net marketing and it doesn’t work for everyone. As an interesting point, many legitimate marketers consider MLM as illegal or something which is unattractive.
An affiliate marketer has to try out different strategies and decide which will work best for her. He/she should then concentrate on those affiliate marketing methods which are suitable for his/her style of internet marketing business.
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Virgil Morse -
About the Author:
To learn more about Different affiliate marketing and earn money visit our affiliate Marketing blog http://mikemyers.me/different-types-of-affiliate-marketing/
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Article Tags:
types of affiliate marketing, affiliate marketing, pay pper sale
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How many types of affiliate marketing programs are there
Different sorts of affiliate Marketing
The benefits of affiliate marketing are way more pronounced today than previously. This is one of the most important reasons for the approval for affiliate marketing among so many online marketers.
Latest web technology has enabled the affiliate marketers to get their statistical data and revenue figures the moment they make an affiliate sale. It is now simple to use companies like PayPal for payment and bill processing. Th…
By:
Virgil Morsel
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Jan 07, 2010
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