An Introduction to the Different Types of Affiliate
Programs
Today, affiliate marketing programs is seen as one of the most
important methods by online companies and merchants to market
their products and services because implementing an affiliate
program doesn't cost much money and it helps generate a consistent
stream of online profit.
On the other hand, the affiliates see affiliate marketing as
a feasible and low cost method to make online online by promoting
other people products using a website or without a website (using
Google AdWords PPC advertising program).
There are many affiliate programs on the Internet and not all
of them are similar. The most basic affiliate programs fall
into 3 categories:
Pay Per Performance
Pay Per click
Residual Income Affiliate Marketing Programs
Pay Per Performance
Pay per performance (PPP) affiliate programs are what most companies
and online merchants likes to use. The companies only need to
pay when an affiliate referral translates into an action. The
action can be a purchase or a lead. The affiliates will spend
their own money to promote the affiliated company's products,
This save a lot of money for the company. PPP affiliate programs
can be futher classified into 2 sub-categories:
Pay Per Sale (PPS) The title says it all. The company only pays
the affiliate when a visitor referred by the affiliate make
a purchase.
Pay Per Lead (PPL) PPL is a little different to PPS. PPL affiliate
programs usually used by finance and insurance companies. In
this type of affiliate marketing, the affiliate will be paid
a fixed commission whenever a visitor referred by him/her to
the merchant's website requested a quote or filled up an online
application form.
Pay Per Click (PPC) Affiliate Programs
PPC affiliate programs are most popular. You should have heard
them a lot. PPC programs are probably the easiest way for web
publishers to make money from their websites and blogs. The
affiliate gets paid a certain amount ($0.05 to $0.50 usually)
whenever a visitor click a banner or text ad displaying on the
affiliate's website. PPC typically used by contextual advertising
companies like Google AdSense, Yahoo Publisher Networks and
much more.
Residual Income Affiliate Marketing Programs
In this type of programs, the affiliate not only compensated
for every customer referred to the merchant's website, the affiliate
is also paid whenever the referred customer returns to the site
and buy another product.
The different types of affiliate marketing programs would deffinitely
work differently for merchants and affiliates, and each would
have their own advantages and drawbacks. To find out which types
of programs work best for you, you'll have to know which one
of them suit your need and characteristic most. And then start
testing them.
