Different Types Of Affiliate Marketing

The advantages of affiliate marketing are more noticeable today than before. This is one of the primary reason for the tremendous popularity of affiliate marketing programs among so many thousands of internet marketers.

Most current web innovation has allowed the affiliate marketers to obtain their data and earnings figures the minute they make an affiliate sale. It is now possible to utilize business like PayPal for payment and receipt processing. This has highly cut the time that an affiliate online marketer has to wait on his payments to be gathered from the merchants.

Both the affiliates and the merchants have now understood that affiliate marketing is effective for both of them. The merchants view affiliate marketing as a chance to market their products at a much lesser expense. On the other hand, the affiliates see affiliate marketing as a straightforward method of earning revenues online by doing something which they like most, and that is web publishing.

Just as the popularity of affiliate marketing has gone into overdrive, likewise the outlook of individuals has changed for the better about affiliate marketing. Affiliate marketing is no longer thought about as a secondary technique of marketing by the merchants, or as an extra income source by an affiliate marketer. For merchants and affiliates alike, affiliate marketing is now considered as a primary source of earnings and revenues.

Do we need to evaluate what type of affiliate marketing will work best for any person? Are there any differences in affiliate marketing programs? Are the paybacks from these programs the same? Which are those affiliate marketing programs that work much better than the others?

There are actually varieties of affiliate marketing, and the types will depend upon how you are going to categorize them. The main classification of affiliate marketing programs falls under 2 categories: pay-per-click (Pay Per Click), and pay-per-performance (PPP).

Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small sites, and most likely the easiest way for them to earn loan. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his website, that is whenever someone clicks through the merchant’s banner or text advertisements.

Pay Per Efficiency (PPP)

PPP affiliate marketing is well liked among merchants and is likewise the most satisfying type for the affiliates. In this type of affiliate program, the merchant pays the affiliate only when his recommendation converts into an action – that is whenever the visitor he has actually referred in fact buys something from the merchant’s site or when the visitor ends up being a lead. On the other hand, this type of affiliate marketing becomes financially most fulfilling for the devoted affiliate, for commissions in PPP affiliate marketing generally comes in the range of 15% to 20% of the real product sales.

Pay-per-performance affiliate marketing can, even more, be categorized into two types: pay-per-sales (PPS) and pay-per-lead (PPL). Both these are extremely popular.

a) 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, in fact, buys something from the merchant’s site. Affiliates are frequently paid on commission basis, although other merchants would choose to pay a repaired cost. But no matter what the basis of the charge is, it is usually higher than the charge paid to affiliates in a pay-per-click affiliate program.

b) Pay Per Lead (PPL) – The pay-per-lead type of affiliate marketing is a small variation of the PPS type and is frequently utilized by insurance and financing companies and other companies who rely on leads for their business to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s website fills an application form or any similar kind related to business of the business. Payment for this type of affiliate marketing is based on a repaired charge whose rates approximate that of the repaired fee in the PPS type. Normally, the sales conversion rate is the greatest in the case of PPL, because, the visitor is not needed to acquire anything however only complete a non-financial transaction, like, filling an application form, registering for a newsletter, and so on.

Aside from these three specific types of affiliate marketing, a great deal 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 consumer he has referred purchases something from the merchant’s website.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the various levels or tiers in the affiliate network by which payments are made.

A) Single Tier – In a single-tier affiliate marketing program, the affiliates are just paid based on the direct sales or traffic he has referred to the merchant. All the previously pointed out affiliate marketing types (i.e. PPS, PPL, and PPC) fall under the single-tier category.

B) Two Tier – In two-tier affiliate marketing programs, the affiliates are not just spent for the direct traffic or sales that he brings to the merchant’s website, but also on every traffic or sales referred by other affiliates who signed up with as sub-affiliate of the above affiliate marketer.

C) Multi-Tier – Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for more variety of levels of affiliates in different tiers in the affiliate network.

D) Residual Earnings Affiliate Marketing – In this type, apart from the affiliate earning money for every consumer he has actually referred to the merchant’s site, the affiliate is likewise paid whenever the customer he has actually referred returns to the merchant’s site and purchases another item. Commission for such kind of affiliate marketing is based on either percentage of sales or based on fixed cost.

Every affiliate online marketer discovers that these various affiliate marketing techniques work in a different way for each of them. Multi-tier affiliate marketing, also called Multi-Level Marketing (MLM) is a highly tough type of internet marketing and it does not work for everybody. As a matter of fact, numerous genuine online marketers consider MLM as illegal or something which is unwanted.

An affiliate online marketer needs to try out different methods and choose which will work best for him or her. He or she must then focus on those affiliate marketing techniques which are suitable for his/her design of online marketing service.

What is your favorite way of affiliate marketing? Let me know by leaving a comment below!