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Welcome
to Affiliate Program Guide! |
The Different Types Of
Affiliate Marketing
Affiliate marketing programs
has never been as popular before as it is today. People
recognizes the benefits of affiliate marketing now than they were
before.
Today, Both the merchants and the affiliates realizes that affiliate
marketing can benefit both of them. 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 alternative method for the merchant to
advertise his products, or as a source of additional income for the
affiliates.
For merchants and affiliates
alike, affiliate marketing is now considered as a main source of
profits and revenues.
So the question now is what type of affiliate marketing will
work best for you? Are all affiliate programs the same? Are the
benefits the same? Or which affiliate program that work better
than the others.
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There are different types of
affiliate marketing, and the number of types will depend on how one
will classify them. The most basic affiliate programs can be
put under two categories.
- Pay Per Click (PPC):
PPC is the most popular type of affiliate marketing for small
websites the easiest way for them to earn money. In this affiliate
program type, the affiliate earns affiliate commissions whenever
someone clicks through the merchant's banner or text ads even if
the visitor he referred does not purchase anything from the
merchant's site. However, typical affiliate commissions for PPC
affiliate programs are small, usually not exceeding a dollar for
every click.
- Pay Per Performance (PPP):
PPP affiliate marketing is the most lucrative type for the
affiliates. In this type of affiliate program, the merchant only
pays the affiliate whenever his referral translates into an
action—that is the referral actually buys something from
the merchant's site or becomes a lead. Affiliate
commissions in PPP affiliate marketing usually comes in the range
of 15% to 20% of the actual product sales. Some products in
affiliate networks like
ClickBank and
PayDotCom pays as much as 75%!
Pay-per-performance (PPP)
affiliate marketing can be further classified into two
popular types: pay-per-sales (PPS) and pay-per-lead (PPL).
- Pay Per Sale (PPS):
In a pay-per-sale type of affiliate program, the merchants pay an
affiliate commission to the affiliate whenever the visitor he has
referred to the merchant's site actually buys something
from the merchant's site. The affiliate commission paid is
generally higher than the fee paid to affiliates in a
pay-per-click affiliate program.
- 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 rely on leads for
their company to grow. In this type of affiliate program, the
affiliate 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. Affiliate commission
for this type of affiliate program is based on a fixed fee whose
rates approximate that of the fixed fee in the PPS type.
Aside from the above types of
affiliate marketing, a lot of other affiliate marketing types exist.
Based on the depth of the affiliate network, it can be classified as
single-tier, two-tier, and multi-tier affiliate
marketing.
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Single-Tier, Two-Tier, and
Multi-Tier Affiliate Marketing
These types of affiliate marketing are based on 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 referred to the merchant. All the previously mentioned
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 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 affiliates who joined the
affiliate program through his recommendation.
Multi-tier affiliate marketing
works the same way, although the affiliate gets additional affiliate
commissions for a wider number of affiliates in different tiers in the
affiliate network.
Residual Income Affiliate Marketing
In residual income affiliate marketing, the affiliate gets paid not
only once for every customer he has referred to the merchant's site.
Rather, the affiliate is also paid for the recurring sales also from the
same customer. Affiliate commissions for such type of affiliate marketing
is based on either sales percentage commission or fixed fee basis.
The different affiliate marketing types would virtually work differently
for merchants and affiliates alike, 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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