Tag: Marketing Affiliate Marketing

The Different Types of Affiliate Marketing

Posted by – June 9, 2009

Boris Tomson asked:


The Different Types Of Affiliate Marketing

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 affiliate marketing have become clearer to a lot 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 chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate 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 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.visit to http://affiliatenetworkssites.blogspot.com

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 better than the others?

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

Pay Per Performance (PPP) PPP affiliate marketing is the most popular among merchant and is also 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 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 affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales. http://affiliatenetworkssites.blogspot.com

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 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 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 rely on leads for their company to grow. In this type of affiliate marketing, 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. 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. If the classification 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 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 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 commission 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 whenever 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 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. http://affiliatenetworkssites.blogspot.com



Update me when site is updated

How to Multiply Your Product Value: Affiliate Marketing

Posted by – April 29, 2009

=”http://www.affiliate-directories-online.com www.affiliate-directories-online.com asked:


. Affiliate marketing is growing by leaps and bounds and it seems there is no stopping it. This form of marketing has become so vital for every business that without it a business is nothing less than dead. Affiliate marketing multiplies the internet presence of a business’s products or services in the market by encouraging other internet sites to promote them. It enhances the exposure of the products and services of a business, thus also improving the efficiency of its overall advertising costs.

A natural focus of any marketing initiative is to ensure that more and more number of surfers click onto a site and also become active buyers. There are various ways to promote your site through other online channels using affiliate marketing such as including banners that affiliates can display on their sites or developing email templates that can be sent by affiliates to the database of their users.

An affiliate works by way of developing traffic by taking care of the individual needs of each user and customizing their content to prospective customers’ requirements and expectations before facilitating delivery of a call into action through to your site. The interesting part is that customers that are diverted to your site have already made up their mind about what you are offering, and therefore are very likely to make a purchase. This way you get a pre-qualified customer, and all of you have to do is make a purchase bill. All this has been possible only because of affiliate marketing.

Contacts that are developed through affiliate marketing are very important because they are derived from places where your business would have not reached or would have reached after having to part with valuable time and money through conventional channels.

Now the big question is who should be hired to carry out affiliate marketing for your business and the answer is it should be the best in the industry. Logic applied here is simple. An affiliate that understands your needs and has a trusted and close relations with the major operators so that it is ideally placed to run is affiliate marketing services should be the one you should have



Update me when site is updated