The advantages of affiliate marketing are more pronounced today than in the past. This is among the primary factor for the tremendous popularity of affiliate marketing programs amongst numerous thousands of web marketers.
Newest web technology has allowed the affiliate marketers to get their statistics and income figures the minute they make an affiliate sale. It is now possible to utilize companies like PayPal for payment and receipt processing. This has extremely cut the time that an affiliate online marketer needs to wait on his payments to be gathered from the merchants.
Both the affiliates and the merchants have now realized that affiliate marketing works for both of them. The merchants perceive affiliate marketing as an opportunity to promote their products at a much lesser cost. On the other hand, the affiliates see affiliate marketing as a straightforward way of making profits online by doing something which they like most, which is web publishing.
Simply as the appeal of affiliate marketing has gone into overdrive, likewise, the outlook of people has actually altered for the much better about affiliate marketing. Affiliate marketing is no longer thought about as a secondary approach of marketing by the merchants, or as an additional earnings source by an affiliate marketer. For affiliates and merchants alike, affiliate marketing is now considered as the main source of earnings and incomes.
Do we now need to analyze what type of affiliate marketing will work best for any individual? Which are those affiliate marketing programs that work better than the others?
There are really varieties of affiliate marketing, and the types will depend upon how you are going to categorize them. The main classification of affiliate marketing programs falls under two classifications: pay-per-click (PPC), and pay-per-performance (PPP).
1. Pay Per Click (PPC) – PPC is the most popular type of affiliate marketing for affiliates with little websites, and probably the easiest method for them to generate income. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever somebody clicks through the merchant’s banner or text ads. The affiliate earns money a specific amount even if the visitor he referred does not acquire anything from the merchant’s website. Typical fees for PPC affiliate programs are small, typically not surpassing a dollar for every click.
2. Pay Per Performance (PPP) – PPP affiliate marketing is well-liked among merchants and is likewise the most fulfilling type for the affiliates. In this kind of affiliate program, the merchant pays the affiliate only when his recommendation converts into an action – that is whenever the visitor he has referred actually purchases something from the merchant’s site or when the visitor becomes a lead. This implies that the merchant conserves a lot on his own direct marketing efforts. On the other hand, this type of affiliate marketing ends up being economically most fulfilling for the dedicated affiliate, for commissions in PPP affiliate marketing typically are available in the series of 15% to 20% of the real product sales. And, in the case of e-products or e-goods, the affiliate commission can go as high as 70 – 75% of the price.
Pay-per-performance affiliate marketing can further be classified into two types: pay-per-sales (PPS) and pay-per-lead (PPL). Both of these are highly popular.
a) Pay Per Sale (PPS) – In a pay-per-sale kind of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has actually described the merchant’s website really purchases something from the merchant’s website. Affiliates are typically paid on a commission basis, although other merchants would choose to pay a fixed cost. No matter what the basis of the charge is, it is normally greater than the fee paid to affiliates in a pay-per-click affiliate program.
b) Pay Per Lead (PPL) – The pay-per-lead kind of affiliate marketing is a small variation of the PPS type and is often utilized by insurance coverage and finance companies and other businesses that rely on leads for their business to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills an application or any similar type related to the business of the business. Payment for this type of affiliate marketing is based on a fixed cost whose rates approximate that of the repaired cost in the PPS type. Typically, the sales conversion rate is the highest in the case of PPL, because, the visitor is not required to purchase anything however only finish a non-financial transaction, like, filling up an application form, signing up for a newsletter, and so on.
Aside from these 3 particular kinds 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 likewise another kind of affiliate marketing that pays the affiliate each time the client he has actually referred purchases something from the merchant’s site.
Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing
These types of affiliate marketing are based upon 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 just paid based on the direct sales or traffic he has referred to the merchant. All the previously discussed 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 are not only spent for the direct traffic or sales that he brings to the merchant’s site but likewise 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 very same method, although the affiliate gets an extra commission for more number of levels of affiliates in different tiers in the affiliate network.
D) Residual Income Affiliate Marketing – In this type, apart from the affiliate getting paid for.
Simply as the popularity of affiliate marketing has gone into overdrive, likewise the outlook of individuals has altered for the better about affiliate marketing. Affiliate marketing is no longer considered as a secondary method of marketing by the merchants, or as an extra income source by an affiliate online marketer. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his website, that is whenever someone clicks through the merchant’s banner or text ads. On the other hand, this type of affiliate marketing becomes economically most fulfilling for the devoted affiliate, for commissions in PPP affiliate marketing generally comes in the range of 15% to 20% of the actual product sales. Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist.