Affiliate marketing programs has never been as popular before as it is today. Why?
There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to many people now than they were before.
Today, both the merchants and the affiliates can see clearly that affiliate marketing programs can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of making money online by doing what they like most, and that is by creating websites.
Just as the popularity of affiliate programs has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate programs are now considered as a main source of income online.
So the question now is what type of affiliate marketing programs will work best for you?
Are all affiliate programs the same? Are the benefits the same? Or are there programs that work better than the others do?
There are actually different types of affiliate programs, 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).
Pay Per Click (PPC)
PPC is the most popular type of affiliate programs for affiliates with small websites, and probably the easiest way for them to earn money.
In the PPC 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 is 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 programs are the most popular between merchant and the most lucrative type for the affiliates. In the PPP, the merchant only pays the affiliate whenever his referral converts into 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 many 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 programs can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).
1) Pay Per Sale (PPS)
In a pay-per-sale type of affiliate programs, 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. However, 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. For digital type of products, most merchants would pay an affiliate more than 50% of the product sales.
2) Pay Per Lead (PPL)
The pay-per-lead type of affiliate programs are a slight variation of the PPS type and are often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate programs, the affiliates are paid whenever the visitor they 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 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 programs, many other programs 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 program. There is also another type of affiliate program that pays the affiliate each time the customer he has referred purchases something from the merchant's site.
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 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 program, 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 programs work 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 Programs
In residual income affiliate programs, the affiliate is 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 program is based on either sales percentage commission or fixed fee basis.
The different affiliate marketing programs 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 programs will suit your needs and characteristics best.
There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to many people now than they were before.
Today, both the merchants and the affiliates can see clearly that affiliate marketing programs can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of making money online by doing what they like most, and that is by creating websites.
Just as the popularity of affiliate programs has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate programs are now considered as a main source of income online.
So the question now is what type of affiliate marketing programs will work best for you?
Are all affiliate programs the same? Are the benefits the same? Or are there programs that work better than the others do?
There are actually different types of affiliate programs, 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).
Pay Per Click (PPC)
PPC is the most popular type of affiliate programs for affiliates with small websites, and probably the easiest way for them to earn money.
In the PPC 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 is 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 programs are the most popular between merchant and the most lucrative type for the affiliates. In the PPP, the merchant only pays the affiliate whenever his referral converts into 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 many 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 programs can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).
1) Pay Per Sale (PPS)
In a pay-per-sale type of affiliate programs, 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. However, 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. For digital type of products, most merchants would pay an affiliate more than 50% of the product sales.
2) Pay Per Lead (PPL)
The pay-per-lead type of affiliate programs are a slight variation of the PPS type and are often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate programs, the affiliates are paid whenever the visitor they 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 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 programs, many other programs 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 program. There is also another type of affiliate program that pays the affiliate each time the customer he has referred purchases something from the merchant's site.
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 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 program, 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 programs work 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 Programs
In residual income affiliate programs, the affiliate is 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 program is based on either sales percentage commission or fixed fee basis.
The different affiliate marketing programs 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 programs will suit your needs and characteristics best.