| Affiliate marketing programs has never been as | | | | merchants pay the affiliate a certain fee whenever the |
| popular before as it is today. Why? There can be a | | | | visitor he has referred to the merchant's site actually |
| number of reasons. The most probable reason, | | | | buys something from the merchant's site. Affiliates are |
| however, could be the fact that the benefits of affiliate | | | | often paid on commission basis, although other |
| marketing have become clearer to a lot of people | | | | merchants would opt to pay a fixed fee. But no |
| now than they were before. | | | | matter what the basis of the fee is, it is generally |
| Today, both the merchants and the affiliates can see | | | | higher than the fee paid to affiliates in a pay-per-click |
| clearly that affiliate marketing can work for both of | | | | affiliate program.oPay Per Lead (PPL) |
| them. The merchant sees affiliate marketing today as | | | | The pay-per-lead type of affiliate marketing is a slight |
| the chance to advertise their products at a lower cost. | | | | variation of the PPS type and is often used by |
| The affiliates, on the other hand, sees affiliate | | | | insurance and finance companies and other companies |
| marketing as an easy way of earning profits online by | | | | who rely on leads for their company to grow. In this |
| doing what they like most, and that is by creating | | | | type of affiliate marketing, the affiliate is paid |
| websites. | | | | whenever the visitor he referred to the merchant's site |
| Just as the popularity of affiliate marketing has shifted | | | | fills up an application form or any similar form related to |
| into greater heights, so has the people's outlook about | | | | the business of the company. Compensation for this |
| it changed. No longer is affiliate marketing considered | | | | type of affiliate marketing is based on a fixed fee |
| today as an alternative method for the merchant to | | | | whose rates approximate that of the fixed fee in the |
| advertise his products, or as a source of additional | | | | PPS type. |
| income for the affiliates. For merchants and affiliates | | | | Aside from these three specific types of affiliate |
| alike, affiliate marketing is now considered as a main | | | | marketing, a lot of other affiliate marketing types exist. |
| source of profits and revenues. | | | | If the classification is based on the depth of the affiliate |
| So the question now is what type of affiliate marketing | | | | network, it can be classified as single-tier, two-tier, and |
| will work best for you? Are all affiliate marketing | | | | multi-tier affiliate marketing. There is also another type |
| programs the same? Are the benefits the same? Or | | | | of affiliate marketing that pays the affiliate each time |
| are there affiliate marketing programs that work better | | | | the customer he has referred purchases something |
| than the others? | | | | from the merchant's site. |
| There are actually different types or classes of | | | | Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing |
| affiliate marketing, and the number of types will depend | | | | These types of affiliate marketing are based on the |
| on how one will classify them. The most basic affiliate | | | | different levels or tiers in the affiliate network by which |
| marketing programs, however, falls under two | | | | payments are made. In a single-tier affiliate marketing |
| categories: pay-per-click (PPC), and | | | | program, the affiliates are only paid based on the |
| pay-per-performance (PPP). | | | | direct sales or traffic he has referred to the merchant. |
| Pay Per Click (PPC) | | | | All the previously mentioned affiliate marketing types |
| PPC is the most popular type of affiliate marketing for | | | | (i.e. PPS< PPL, and PPC) fall under the single-tier |
| affiliates with small websites, and probably the easiest | | | | classification. |
| way for them to earn money. In this affiliate marketing | | | | In two-tier affiliate marketing programs, the affiliate is |
| type, the merchant pays his affiliate whenever a visitor | | | | not only paid for the direct traffic or sales that he |
| is referred to his site, that is whenever someone clicks | | | | refers to the merchant's site, but also on every traffic |
| through the merchant's banner or text ads. The affiliate | | | | or sales referred by various other affiliates who joined |
| gets paid a certain amount even if the visitor he | | | | the affiliate program through his recommendation. |
| referred does not purchase anything from the | | | | Multi-tier affiliate marketing works the same way, |
| merchant's site. However, typical fees for PPC affiliate | | | | although the affiliate gets additional commission for a |
| programs are small, usually not exceeding a dollar for | | | | wider number of affiliates in different tiers in the |
| every click. | | | | affiliate network. |
| Pay Per Performance (PPP) | | | | Residual Income Affiliate Marketing |
| PPP affiliate marketing is the most popular among | | | | In residual income affiliate marketing, the affiliate gets |
| merchant and is also the most lucrative type for the | | | | paid not only once for every customer he has |
| affiliates. In this type of affiliate program, the merchant | | | | referred to the merchant's site. Rather, the affiliate is |
| only pays the affiliate whenever his referral translates | | | | also paid whenever the customer he has referred |
| into an actionthat is whenever the visitor he has | | | | returns to the site and purchase another product. |
| referred actually buys something from the merchant's | | | | Compensation for such type of affiliate marketing is |
| site or when the visitor becomes a lead. This means a | | | | based on either sales percentage commission or fixed |
| lot of savings for the merchant. On the other hand, it | | | | fee basis. |
| becomes the most lucrative type for the dedicated | | | | The different affiliate marketing types would virtually |
| affiliate, for commissions in PPP affiliate marketing | | | | work differently for merchants and affiliates alike, and |
| usually comes in the range of 15% to 20% of the | | | | each would generally have their own list of benefits. |
| actual product sales. | | | | Which type of affiliate marketing will work best for |
| Pay-per-performance affiliate marketing can be further | | | | you? It is not really for me to tell. Rather, it is for you to |
| classified into two popular types: pay-per-sales (PPS) | | | | choose which type of affiliate marketing program will |
| and pay-per-lead (PPL).oPay Per Sale (PPS) | | | | suit your needs and characteristics best. |
| In a pay-per-sale type of affiliate marketing, the | | | | |