DIFFERENT KINDS OF AFFILIATE MARKETING PROGRAMS

The popularity of affiliate marketing programs is more now than ever before. There are several reasons for this. However, the most likely reason is that the advantages of affiliate marketing are clearer now than before. Both the merchant account affiliates and the merchants clearly understand the benefits of affiliate marketing and how it is advantageous to each of them. Today, merchants see affiliate marketing as a great opportunity to advertise their services and products at lower costs. In contrast to this, the merchant account affiliates see affiliate marketing as a simple and easy way of making profits over the internet which they like doing the most, creating sites.

With the increase in popularity of affiliate marketing, the way people view this business has significantly changed. Affiliate marketing is no longer an alternative way for advertising products. Also, the merchant account affiliates consider affiliate marketing as a primary income source. For the merchant account affiliates and the trader, affiliate marketing is said to be the primary source of revenues, as well as profits.

It is very important for merchant account affiliates to know the different classes or kinds of affiliate marketing. The basic types of affiliate marketing programs can be classified as: pay per click and pay per performance.

Pay per click or PPC – This is the most common affiliate marketing type and is also the easiest method for affiliates to make money. Here, the trader will make a payment to the affiliate, whenever a user refers to the trader’s site. The affiliate will get his/her commission, even if the visitor does not make a purchase from the trader’s website. However, the PPC affiliate program fees are very small and generally less than a dollar for each click.

Pay per performance or PPP – The PPP type of affiliate marketing is very popular among the merchants and is also a lucrative type among the affiliates. Here, the traders pay the affiliates only when a referral transfers into a purchase. This will result in huge savings for the merchants alternatively; dedicated affiliates are benefited by this type as the PPP affiliate marketing commissions generally range between 15% and 20% of the product sales.

The pay per performance type of affiliate marketing can be classified into: pay per sales and pay per lead.

Pay per lead or PPL – This affiliate marketing type is often preferred by finance and insurance firms and other firms who depend on leads for the growth of their firm. Here, the affiliate will be paid whenever the user referred by him to the trader’s website fill up a form or something similar that is related to the firm’s business. The compensation received is usually fixed.

Pay per sales or PPS – In this affiliate marketing type, the traders pay the affiliates certain fees when the user referred by him buys something from the site of the trader. The affiliates get payments on the basis of commissions and are higher than the fees received from the PPC affiliate program.