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The Different Types Of Online Affiliate Marketing
The Different Types Of Online Affiliate Marketing
By Jamie Snodgrasss, Mon Jan 2nd
Affiliate marketing programs has never been as popular before asit is today. Why? There can be a number of reasons. The mostprobable reason, however, could be the fact that the benefits ofaffiliate marketing have become clearer to a lot of people nowthan they were before. Today, both the merchants and the affiliates can see clearlythat marketing can work for both of them. The merchantsees marketing today as the chance to advertise theirproducts at a lower cost. The affiliates, on the other hand,sees marketing as an easy way of earning profitsonline by doing what they like most, and that is by creatingwebsites. Just as the popularity of marketing has shifted intogreater heights, so has the people's outlook about it changed.No longer is marketing considered today as analternative method for the merchant to advertise his products,or as a source of additional income for the affiliates. Formerchants and affiliates alike, marketing is nowconsidered as a main source of profits and revenues.
So the question now is what type of marketing willwork best for you? Are all marketing programs thesame? Are the benefits the same? Or are there affiliatemarketing programs that work better than the others? There are actually different types or classes of affiliatemarketing, and the number of types will depend on how one willclassify them. The most basic marketing programs,however, falls under two categories: pay-per-click (PPC), andpay-per-performance (PPP). *Pay Per Click (PPC) PPC is the most popular type of marketing foraffiliates with small websites, and probably the easiest way forthem to earn money. In this marketing type, themerchant pays his whenever a visitor is referred tohis site, that is whenever someone clicks through the merchant'sbanner or text ads. The gets paid a certain amounteven if the visitor he referred does not purchase anything fromthe merchant's site. However, typical fees for PPC affiliateprograms are small, usually not exceeding a dollar for everyclick. *Pay Per Performance (PPP) PPP marketing is the most popular among merchant andis also the most lucrative type for the affiliates. In this typeof program, the merchant only pays the affiliatewhenever his referral translates into an action--that iswhenever the visitor he has referred actually buys somethingfrom 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 marketing usually comes in therange of 15% to 20% of the actual product sales. Pay-per-performance marketing can be furtherclassified into two popular types: pay-per-sales (PPS) andpay-per-lead (PPL). oPay Per Sale (PPS) In a pay-per-sale type of marketing, the merchants paythe a certain fee whenever the visitor he has referredto the merchant's site actually buys something from themerchant's
site. Affiliates are often paid on commission basis,although other merchants would opt to pay a fixed fee. But nomatter what the basis of the fee is, it is generally higher thanthe fee paid to affiliates in a pay-per-click program. oPay Per Lead (PPL) The pay-per-lead type of marketing is a slightvariation of the PPS type and is often used by insurance andfinance companies and other companies who rely on leads fortheir company to grow. In this type of marketing, theaffiliate is paid whenever the visitor he referred to themerchant's site fills up an application form or any similar formrelated to the business of the company. Compensation for thistype of marketing is based on a fixed fee whose ratesapproximate that of the fixed fee in the PPS type. Aside from these three specific types of marketing, alot of other marketing types exist. If theclassification is based on the depth of the network,it can be classified as single-tier, two-tier, and multi-tieraffiliate marketing. There is also another type of affiliatemarketing that pays the each time the customer he hasreferred purchases something from the merchant's site. *Single-Tier, Two-Tier, and Multi-Tier Marketing These types of marketing are based on the differentlevels or tiers in the network by which payments aremade. In a single-tier marketing program, theaffiliates are only paid based on the direct sales or traffic hehas referred to the merchant. All the previously mentionedaffiliate marketing types (i.e. PPS< PPL, and PPC) fall underthe single-tier classification. *In two-tier marketing programs, the is notonly paid for the direct traffic or sales that he refers to themerchant's site, but also on every traffic or sales referred byvarious other affiliates who joined the programthrough his recommendation. Multi-tier marketing worksthe same way, although the gets additional commissionfor a wider number of affiliates in different tiers in theaffiliate network. * Residual Income Marketing In residual income marketing, the gets paidnot only once for every customer he has referred to themerchant's site. Rather, the is also paid whenever thecustomer he has referred returns to the site and purchaseanother product. Compensation for such type of affiliatemarketing is based on either sales percentage commission orfixed fee basis. The different marketing types would virtually workdifferently for merchants and affiliates alike, and each wouldgenerally have their own list of benefits. Which type ofaffiliate marketing will work best for you? It is not really forme to tell. Rather, it is for you to choose which type ofaffiliate marketing program will suit your needs andcharacteristics best.
Author is writter for sites such as Information Today About the author:Author is writter for sites such as Information Today
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