Thursday, January 8, 2009

Different Varieties Of Affiliate Marketing

The benefits of affiliate marketing is now more pronounced than before. This is one of the main reasons for the immense popularity of affiliate marketing programs among so many thousands of Internet merchants.

Edge technology has enabled the affiliate marketing to get their statistics and income figures in the time it makes a sale of membership. It is now possible to use companies like PayPal for payment and receipt processing. This has very limited time in which an affiliate marketing has to wait for your payments to be collected by the merchants.

Both participants and traders have realized that affiliate marketing is effective for both. The merchants perceive affiliate marketing as an opportunity to advertise their products at a much lower cost. On the other hand, affiliates see affiliate marketing as an easy way to make profits online by doing something they like more, and it is web publishing.

As the popularity of affiliate marketing has gone into overdrive, similarly the outlook of people has changed for the better on affiliate marketing. Affiliate marketing is no longer regarded as a secondary method of marketing merchants, or as an additional revenue stream by a marketing affiliate. For merchants and affiliates alike, affiliate marketing is now considered a major source of profits and revenues.

Now we have to consider what type of affiliate marketing will work best for anyone? Are there differences in the affiliate marketing programs? Are the profitability of these programs the same? What are affiliate marketing programs that work better than others?

In fact, there are varieties of affiliate marketing, and rates depend on how to classify them. The main classification of affiliate marketing programs falls into two categories: pay-per-click (PPC) and pay-per-performance (PPP).

1. 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.

2. Pay per performance (PPP) - PPP affiliate marketing is very popular among traders and is also the most rewarding for the type of membership. In this type of affiliate program, the merchant pays the affiliate only when his referral converts into an action - that is, when the visitor he has referred purchases something from the merchant's site or when the visitor becomes a lead. This means that the market saves a lot on their own direct marketing efforts. Moreover, this type of affiliate marketing becomes more economically viable for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of product sales. And in the case of EE-products or goods, the affiliate commission can go as high as 70 - 75% of the purchase price.

Payment for performance affiliate marketing can also be classified into two types: pay-per-sales (PPS) and pay per lead (PPL). Both are very 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 buys something from the merchant's site . Affiliates are often paid on commission, although other merchants choose to pay a fixed rate. But no matter what the base rate is usually higher than the rate paid to members on a pay per click affiliate program.

b) Pay Per Lead (PPL) - Payment for carrying the type of affiliate marketing is a slight variation in the rate of the EPA and is often used by insurance companies and other businesses that depend on tips to grow your business . 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 rate on the type of EPA. In general, the conversion rate of sales is the highest in the case of PPL, as the visitor is not forced to buy something, but does not complete a financial transaction, such as filling out an application form, subscribing to a newsletter, etc.

Apart 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 can be classified as a single level, two-tier and multi-tier affiliate marketing. There is another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant's site.

A single-level, two levels, and the Multi-Level Marketing Affiliate

These types of affiliate marketing are based on different levels or layers in the network of affiliates in which payments are made.

A) Individual Level - In a single level affiliate marketing program, affiliates are only paid on the basis of direct sales or traffic he has referred to the merchant. All the above mentioned affiliate marketing types (ie PPS, PPL, and PPC) fall under the single classification level.

B) Level Two - On two levels, the affiliate marketing programs, participants not only paid for the direct traffic or sales that he brings to the Web retailer, but also in all sales or traffic on other members who joined as sub-affiliate of the above affiliate marketing.

C) Multi-Level - Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for more number of participants in the levels of different levels in the affiliate network.

D) Residual Income Affiliate Marketing - In this type, as well as the subsidiary charged for each customer who has referred to the site of the vendor, the affiliate is also paid whenever the customer has been referred back to the traders and the site purchase another product. Commission for this type of affiliate marketing is based on the percentage of either sales or on the basis of fixed fee.

Each affiliate marketing considers these different methods of affiliate marketing work for each one of them. For example, several levels of affiliate marketing, also called multi-level marketing (MLM) is a very difficult type of internet marketing does not work for everyone. As a matter of fact, many traders regard as legitimate MLM is something illegal or undesirable.

An affiliate marketing is to test different methods and decide what works best for him or her. He / she should focus on affiliate marketing methods that are appropriate for your style of business Internet marketing.


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