Affiliate Marketing In Its Numerous Forms
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 profits of affiliate merchandising have become clearer to a lot of souls now than they were before.
Today, both the merchants and the affiliates can see clearly that affiliate dealing can work for both of them. The merchant sees affiliate trading today as the chance to advertise their products at a lower price. The affiliates, on the other hand, sees affiliate trading as an easy way of earning benefits online through doing what they like most, and that is through 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 selling considered today as a substitute method for the merchant to advertise his products, or as a source of excess income for the affiliates. For merchants and affiliates alike, affiliate dealing is now considered as a main source of profits and revenues.
So the question now is what type of affiliate merchandising will work best for you? Are all affiliate selling programs the same? Are the profits the same? Or are there affiliate trading 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 dealing 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 selling for affiliates with small websites, and plausibly the easiest way for them to earn money. In this affiliate selling type, the merchant pays his affiliate if a visitant is referred to his site that is when someone clicks through the merchant’s banner or text ads. The affiliate gets paid a certain amount even when the visitant he referred performs not purchase anything from the merchant’s site. However, distinctive fees for PPC affiliate programs are small, normally not exceeding a dollar for every click.
• Pay-Per Performance (PPP)
PPP affiliate selling 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 when 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 visitant 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 dealing usually comes in the range of 15% to 20% of the actual product sales.
Pay-per-performance affiliate selling 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 when the visitant he has referred to the merchant’s site actually buys something from the merchant’s site. Affiliates are often paid on commission basis, while other merchants would opt to pay a fixed fee. But no matter what the base 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 selling 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 visitant 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 dealing 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 selling types exist. Whenever the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate selling. There is also another type of affiliate dealing 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 merchandising are based on the different levels or tiers in the affiliate network through which payments are developed. In a single-tier affiliate merchandising program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate selling types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.
• In two-tier affiliate selling 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 through various other affiliates who joined the affiliate program by his recommendation. Multi-tier affiliate selling works the same way, tho' the affiliate gets extra 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 if the customer he has referred returns to the site and buy another product. Compensation for such type of affiliate trading is based on either sales percentage commission or fixed fee basis.
The different affiliate merchandising types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of gains. Which type of affiliate selling will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate dealing program will suit your needs and characteristics best.
Uchenna Ani-Okoye is an internet marketing advisor
Sign Up Now and Receive Our FREE Make Money Online E-Course At: http://www.insightempire.com/
Service Availability: Most services reviewed by this websites are available in the United Kingdom. This includes the following cities and their surroundings: London, Birmingham, Leeds, Glasgow, Sheffield, Bradford, Edinburgh, Liverpool, Manchester, Bristol, Wakefield, Cardiff, Coventry, Nottingham, Leicester, Sunderland, Belfast, Newcastle upon Tyne, Brighton, Hull, Plymouth, Stoke-on-Trent, Wolverhampton, Derby, Swansea, Southampton, Salford, Aberdeen, Westminster, Portsmouth, Oxford, Newport, Norwich, Cambridge, Gloucester, Bath, Canterbury and others.
Looking For More Information?
Make sure to explore other articles in the Internet Marketing category or contact us to suggest a website or a service to review.
|
|
I guess I would be in multi-tier marketing. There certainly are many different business models out there. It seems that marketing is as vast as cyberspace.