Cyril I. O. (@admin)
Aug 18th 2020, 5:58 pm

Looking at the Affiliate marketing programs, it has never been as popular before as it is today.

Because 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 much people now than they were before.

Nowadays, both the merchants and the affiliators 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 for their business.

Just as the popularity of affiliate marketing has shifted into greater heights this days, so has the people's out there looking about it changed. No wonder affiliate marketing considered today as an alternative method for the merchant to advertise their products, or as a source of additional income for the affiliates. For merchants and affiliates are the same, affiliate marketing is now considered as a main source of profits and revenues in the world of Internet.

  • **So the question now is what type of affiliate marketing will work best for me? ***

  • As all affiliate marketing programs are the same?

    • The benefits are the same?

    • **Or are there affiliate marketing programs that work better than the others?***

There are actually different types or classes of online marketing, and the number of types will depend on how you will classify them. The most basic online 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 online 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 adverts. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's website. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

• Pay Per Performance (PPP)

PPP online 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 website 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 Pay Per Performance affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

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 option 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 online 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, 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 Marketing

These types of marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant.

Note: All the above 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 network.

• Residual Income Marketing

In residual income marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliator is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliators as well, and each would generally have their own list of gains.

  • 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 marketing program will suit your needs and characteristics best.