Various Types of Marketing For Affiliates

No longer is affiliate marketing considered as an alternative method for the merchant. The merchant sees affiliate marketing as the chance to advertise products at a much lower cost. Affiliates see this type of marketing as an opportunity to earning profits online without having the typical start-up costs (like creating or getting products, inventory, fulfillment). For merchants and affiliates alike, affiliate marketing is now considered as a main source of advertising and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing. The most basic affiliate marketing programs fall under two categories: pay-per-click (PPC), and pay-per-performance (PPP). There are also tier-level affiliate marketing programs. Let take a look at all of them.

Pay Per Click (PPC) PPC is the most popular type of affiliate marketing for you if you have a small website and probably the easiest way for you to earn money. In this affiliate marketing type, the merchant pays you whenever a visitor is referred to their site, that is… whenever someone clicks through the merchant’s banner or text ads. You get paid a certain amount even if the visitor you referred does not purchase anything from the merchant’s site. However, typical payments (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 merchants and is also the most lucrative type for you. In this type of affiliate program, the merchant only pays you whenever your referral translates into an action, that is…whenever the visitor you have referred actually buys something from the merchant’s site.  This type of affiliate marketing can become one of the most lucrative types for the dedicated affiliate. Commissions in PPP affiliate marketing usually range 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 merchant pays you a certain fee whenever the visitor you referred actually buys something from the merchant’s site. You are often paid on a commission basis, although some merchants would opt to pay a fixed fee. But no matter what the basis of the fee, it is generally higher than 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, you get paid whenever the visitor you referred to the merchant’s site fills out 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 determined by the merchant.

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, you are only paid based on the direct sales or traffic you have referred to the merchant. All the previously mentioned affiliate marketing types (PPS, PPL, and PPC) fall under the single-tier classification.

In a two-tier affiliate marketing program, you are paid for the direct traffic or sales that you refer to the merchant’s site as well as any traffic or sales referred by other affiliates who joined that merchant’s affiliate program through your recommendation.

Multi-tier affiliate marketing works the same way and you get additional commission for a wider number of affiliates in different tiers in the affiliate network.

Residual Income Affiliate Marketing In residual income affiliate marketing, you get paid for every customer you referred and purchased something from the merchant’s site. But…you also get paid whenever that same customer returns to the merchant’s site and purchases something else. Compensation for this type of affiliate marketing is based on sales percentage, commission or a fixed fee basis.

Which type of affiliate marketing will work best for you? Now that you know the differences, only you can choose which ones will suit your goals. It’s time to start "affiliating".

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