Today, affiliate
marketing programs is seen as one of the most
important methods by online companies and
merchants to market their products and services
because implementing an affiliate program
doesn't cost much money and it helps generate
a consistent stream of online profit.
On the other hand,
the affiliates see affiliate marketing as
a feasible and low cost method to make online
online by promoting other people products
using a website or without a website (using
Google AdWords PPC advertising program).
There are many affiliate programs on the Internet
and not all of them are similar. The most
basic affiliate programs fall into 3 categories:
Pay Per Performance
Pay
Per click
Residual
Income Affiliate Marketing Programs
Pay Per Performance
Pay per performance (PPP) affiliate programs
are what most companies and online merchants
likes to use. The companies only need to pay
when an affiliate referral translates into
an action. The action can be a purchase or
a lead. The affiliates will spend their own
money to promote the affiliated company's
products, This save a lot of money for the
company. PPP affiliate programs can be futher
classified into 2 sub-categories:
Pay Per Sale (PPS) The title says it all.
The company only pays the affiliate when a
visitor referred by the affiliate make a purchase.
Pay Per Lead (PPL)
PPL is a little different to PPS. PPL affiliate
programs usually used by finance and insurance
companies. In this type of affiliate marketing,
the affiliate will be paid a fixed commission
whenever a visitor referred by him/her to
the merchant's website requested a quote or
filled up an online application form.
Pay Per Click
(PPC) Affiliate Programs
PPC affiliate programs are most popular. You
should have heard them a lot. PPC programs
are probably the easiest way for web publishers
to make money from their websites and blogs.
The affiliate gets paid a certain amount ($0.05
to $0.50 usually) whenever a visitor click
a banner or text ad displaying on the affiliate's
website. PPC typically used by contextual
advertising companies like Google AdSense,
Yahoo Publisher Networks and much more.
Residual Income
Affiliate Marketing Programs
In this type of programs, the affiliate not
only compensated for every customer referred
to the merchant's website, the affiliate is
also paid whenever the referred customer returns
to the site and buy another product.
The different types
of affiliate marketing programs would deffinitely
work differently for merchants and affiliates,
and each would have their own advantages and
drawbacks. To find out which types of programs
work best for you, you'll have to know which
one of them suit your need and characteristic
most. And then start testing them.
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