The Different Varieties Of Online Affiliate Advertising

The Different Sorts Of Online Affiliate Advertising and marketing


Affiliate marketing and advertising programs has by no means been as common prior to as it is today. Why? There can be a number of motives. The most probable reason, even so, could be the reality that the advantages of affiliate marketing have turn into clearer to a lot of men and women now than they have been prior to.

These days, both the merchants and the affiliates can see clearly that affiliate advertising can work for each of them. The merchant sees affiliate advertising these days as the chance to promote their goods at a reduced price. The affiliates, on the other hand, sees affiliate marketing and advertising as an straightforward way of earning income on-line by performing what they like most, and that is by creating sites.

Just as the reputation of affiliate advertising has shifted into greater heights, so has the people"s outlook about it changed. No longer is affiliate marketing deemed right now as an alternative approach for the merchant to promote his goods, or as a supply of added earnings for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a principal supply of income and revenues.

So the question now is what sort of affiliate advertising and marketing will work best for you? Are all affiliate marketing applications the exact same? Are the positive aspects the very same? Or are there affiliate advertising and marketing programs that perform greater than the other people?

There are actually diverse varieties or classes of affiliate marketing and advertising, and the number of types will rely on how 1 will classify them. The most standard affiliate advertising applications, however, falls under two categories: pay-per-click (PPC), and pay-per-overall performance (PPP).

• Pay Per Click (PPC)

PPC is the most common variety of affiliate advertising for affiliates with small internet sites, and probably the easiest way for them to earn cash. In this affiliate advertising variety, the merchant pays his affiliate anytime a visitor is referred to his internet site, that is whenever a person clicks by means of the merchant"s banner or text advertisements. The affiliate gets paid a certain quantity even if the visitor he referred does not obtain anything from the merchant"s web site. Nevertheless, typical fees for PPC affiliate applications are little, typically not exceeding a dollar for each and every click.


• Pay Per Performance (PPP)

PPP affiliate marketing is the most common amongst merchant and is also the most profitable sort for the affiliates. In this kind of affiliate plan, the merchant only pays the affiliate anytime his referral translates into an action—that is anytime the visitor he has referred in fact buys some thing from the merchant"s website or when the visitor becomes a lead. This signifies a lot of savings for the merchant. On the other hand, it becomes the most lucrative sort for the committed affiliate, for commissions in PPP affiliate advertising usually comes in the variety of 15% to 20% of the actual product sales.

Spend-per-overall performance affiliate marketing and advertising can be further classified into two well-liked varieties: spend-per-sales (PPS) and spend-per-lead (PPL).

o Pay Per Sale (PPS)

In a pay-per-sale kind of affiliate advertising and marketing, the merchants pay the affiliate a particular fee anytime the visitor he has referred to the merchant"s web site really buys anything from the merchant"s web site. Affiliates are usually paid on commission basis, despite the fact that other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is usually larger than the charge paid to affiliates in a spend-per-click affiliate system.

o Pay Per Lead (PPL)

The spend-per-lead type of affiliate marketing is a slight variation of the PPS variety and is typically employed by insurance and finance firms and other businesses who rely on leads for their firm to grow. In this sort of affiliate advertising and marketing, the affiliate is paid whenever the visitor he referred to the merchant"s web site fills up an application kind or any similar form associated to the enterprise of the organization. Compensation for this type of affiliate marketing and advertising is based on a fixed charge whose prices approximate that of the fixed charge in the PPS variety.

Aside from these 3 distinct types of affiliate advertising, a lot of other affiliate marketing and advertising sorts 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 advertising and marketing. There is also one more type of affiliate marketing and advertising that pays the affiliate every time the client he has referred purchases anything from the merchant"s internet site.

• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing and advertising

These varieties of affiliate marketing are primarily based on the diverse levels or tiers in the affiliate network by which payments are produced. In a single-tier affiliate advertising and marketing system, the affiliates are only paid based on the direct sales or site visitors he has referred to the merchant. All the previously talked about affiliate advertising and marketing varieties (i.e. PPS

Different Varieties Of Affiliate Marketing

Different Varieties Of Affiliate Marketing


The benefits of affiliate marketing is more pronounced today than before. This is one of the main reason for the immense popularity of affiliate marketing programs among so many thousands of internet marketers.

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 highly curtailed the time that an affiliate marketer needs to wait for his payments to be collected from the merchants.

Both the affiliates and the merchants have now realised that affiliate marketing is effective for both of them. The merchants perceive affiliate marketing as an opportunity to advertise their products at a much lesser cost. On the other hand, the affiliates see affiliate marketing as a uncomplicated way of earning profits online by doing something which they like most, and that is web publishing.

Just as the popularity of affiliate marketing has gone into overdrive, similarly 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, or as an additional income source by an affiliate marketer. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

We now need to analyze 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 are those affiliate marketing programs that work better than the others?

There are actually varieties of affiliate marketing, and the types will depend on how you are going to classify them. The primary classification of affiliate marketing programs falls under 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 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. This means that the merchant saves a lot on his own direct marketing efforts. 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. And, in the case of e-products or e-goods, the affiliate commission can go as high as 70 - 75% of the sale price.

Pay-per-performance affiliate marketing can further be classified into two types: pay-per-sales (PPS) and pay-per-lead (PPL). Both these are highly 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 actually buys something from the merchant"s site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

b) Pay Per Lead (PPL) - The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. 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 fee in the PPS type. Generally, the sales conversion rate is the highest in the case of PPL, because, the visitor is not required to purchase anything but only complete a non-financial transaction, like, filling up an application form, subscribing to a newsletter, etc.

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.

A) 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.

B) 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.

C) 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.

D) 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. For instance, multi tier affiliate marketing, also called Multi-Level Marketing (MLM) is a highly difficult type of internet marketing and it does not work for everyone. As a matter of fact, many legitimate marketers consider MLM as illegal or something which is undesirable.

An affiliate marketer has to try out different methods and decide which will work best for him or her. He/she should then concentrate on those affiliate marketing methods which are suitable for his/her style of internet marketing business.