Grenville Kleiser said, "
Be grateful
for the joy of life. Be glad
for the privilege of work. Be thankful for the opportunity to give and
serve. Good work is the great character builder, the sweetener fo life,
the maker of destiny. Let the spirit of your work be right, and whether
your task be great or small you will then have the satisfaction of
knowing it is worth while."
Types Or Classes Of Affiliate
Marketing
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 marketing programs, however, falls under two
categories: pay-per-click (PPC), and pay-per-performance (PPP).
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• Pay Per Click (PPC)
PPC is the most popular type of affiliate 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 ads. The affiliate
gets
paid a certain amount even if the visitor he referred does not purchase
anything from the merchant's site. However, typical fees for PPC
affiliate programs are small, usually not exceeding a dollar for every
click.
• Pay Per
Performance (PPP)
PPP affiliate 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 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 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).
• 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 opt 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.
• Pay Per Lead
(PPL)
The pay-per-lead type of affiliate 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, a lot of
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.
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Single-Tier, Two-Tier, and
Multi-Tier Affiliate
Marketing
These types of affiliate marketing are based on the different levels or
tiers in the affiliate network by which payments are made.
• In a
single-tier affiliate marketing program, the affiliates are only paid
based on the direct sales or traffic he has referred to the
merchant.
All the previously 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 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 whenever the customer he has
referred returns to the site and purchase another product.
Compensation for such type of affiliate marketing is based on either
sales percentage commission or fixed fee basis.
Summary
The different affiliate marketing types would virtually work
differently for merchants and affiliates alike, and each would
generally have their own list of benefits. 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 affiliate marketing
program will suit your needs and characteristics best.
Warm
regards,
Mike
Flynn
(Another Commercial)
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