In my recent post; Affiliate Marketing Program On The Internet: How Does It Works?; I detailed the meaning of affiliate marketing and explained the roles of the main actors involved in an affiliate program transaction. However, I didn't explain the basic types of affiliate programs. That’s what I’m here to share with you today.
Over the past few years, affiliate programs have grown so much, taking many interesting forms. The most basic affiliate marketing programs, however, falls under two categories:
- pay-per-click (PPC), and
- pay-per-performance (PPP).
1. Pay-Per-Click (PPC) Affiliate ProgramThis is the easiest type of affiliate marketing in which affiliates earn money whenever a visitor is referred to a merchant site. The referred visitors don't have to buy anything before the affiliate will get paid and what the visitor does on the merchant site doesn't concern the affiliate.
If you promote a PPC affiliate program, you will get paid a certain amount even if the visitor you refer doesn't buy anything from the merchant's site. What you will earn per click might not be up to a dollar though.
2. Pay-Per-Performance (PPP) Affiliate ProgramThis is the type of affiliate program preferred by majority of merchants because merchants will pay affiliates ONLY when the referred visitors perform an action.
PPP affiliate program can be further classified into two popular types:
- pay-per-sale (PPS)
- pay-per-lead (PPL).
Pay-Per-SaleIn this arrangement, affiliates get paid when the visitors referred to merchant's site purchase something. Merchant pay affiliates a percentage of the sale price when the purchase is completed. Amazon.com's affiliate program is an example of PPS affiliate program.
Pay-Per-LeadIn this program, affiliates get paid once the referred visitors provide their contact information on the merchant's site by filling out a simple form related to the business of the merchant.
The merchant may use the info as a sales lead or sell to another company as a sales lead. PPL is often used by finance companies and other companies who rely on leads for their company to grow.
Aside from these basic types of affiliate marketing, a lot of other affiliate marketing types exist. Just pick one which you think would suit you best. You can also venture into multiple types at the same time to find out which ones are right for you.
You might think it is easy, but in reality, you need to put in a lot of effort at first for affiliate marketing to work. Once you finally know your way through it, your affiliate marketing venture can turn from being an additional source of income on the internet to being your primary financial source.
I hope this helps.
In my next post, I will share with you, how I am making money from affiliate programs in Nigeria, how to join affiliate networks, as well as how to acquire affiliates for your online businesses.
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