Latest web technology has enabled the affiliate marketers to get their statistics and income figures the moment they make an affiliate sale. It is now possible to use companies like PayPal for payment and receipt processing. This has cut the time that an affiliate marketer needs to wait for his payments to be collected from each program.

Both the affiliates and the merchants have now realised that affiliate marketing is a benefit  for both of them. The merchants see affiliate marketing as an opportunity to advertise their products at a much lesser cost. The affiliates see affiliate marketing as a uncomplicated way of earning profits online by promoting products they don’t have to ship, service or make.

As  affiliate marketing has gone into overdrive,  the outlook of people has changed for the better about affiliate marketing. Affiliate marketing is no longer considered as a secondary method of marketing by the merchants.

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 affiliate marketing programs work better than the others?

Affiliate Marketing Classifications

Pay-Per-Click (PPC), and Pay-Per-Performance (PPP).

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.

Pay Per Performance (PPP) – PPP affiliate marketing is well liked among merchants and is also the most rewarding type for the affiliates. In this type of affiliate program, the merchant pays the affiliate only when his referral converts 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.

On the other hand, this type of affiliate marketing becomes financially most rewarding for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

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.

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.

Single Tier – 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.

Two Tier – In two-tier affiliate marketing programs, the affiliates are not only paid for the direct traffic or sales that he brings to the merchant’s site, but also on every traffic or sales referred by other affiliates who joined as sub-affiliate of the above affiliate marketer.

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

Residual Income Affiliate Marketing – In this type, apart from the affiliate getting paid for every customer he has referred to the merchant’s site, the affiliate is also paid whenever the customer he has referred goes back to the merchant’s site and purchases another product. Commission for such type of affiliate marketing is based on either percentage of sales or based on fixed fee.

Every affiliate marketer finds that these different affiliate marketing methods work differently for each of them.

An affiliate marketer has to try out different methods and decide which will work best for him or her.

To Your Online Success

John Paul

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