Understanding the different types of online affiliate marketing is the initial step in your path to affiliate marketing success. Affiliate marketing platforms are much more popular online today than they have been in the past. The key reason why? The majority of quite possible reasons might be the benefits of affiliate programs. These benefits are now clear to the many online marketers. Now, there are many more advantages known than in the past.
Advantages of affiliate programs
Nowadays, the merchant and the affiliate marketer can see very well that affiliate programs will work for both of their needs. Merchants view affiliate marketing as a chance to promote their services. Also, their products at a more affordable price. The affiliates see online affiliate programs as a simple way of making profits online. They can do this by doing the work they like the most. For them, it happens to be creating online websites.
Affiliate marketing has grown in popularity by many marketers. Also, the marketers perspective has changed about it now. Online affiliate marketing is no longer considered now as a substitution for merchants to advertise services or products. It is also an area of a lot more income for the affiliates. It is recognized for affiliates and merchants that affiliate programs are a primary source of profits and monthly income.
Do your research
So, what type of online affiliate programs will work perfectly for your goals? Is all online affiliate marketing the same? Do they have the same benefits? On the other hand, are there programs that work much better than others do? You will find different kinds or categories of affiliate programs. Furthermore, the many types depend how they categorize them. Most typical online affiliate programs fall under two categories.
Pay per click and pay per performance
1. Pay Per Click is the more popular kind of affiliate programs for marketers with very few websites. It is possibly the simplest method to earn the most money. In PPC, a merchant pays the affiliate marketer any time visitors are referred to the merchants site. This is someone clicking through the merchants text or banner ad units.
The affiliate receives a certain pay despite the visitor he referred doesn’t buy from a merchants website. Nevertheless, typical service charges for Pay Per Click affiliate programs are rather small. In general, each click is not more than a dollar.
2. Pay Per Performance online affiliate marketing is considered the most popular with merchants. It is the most lucrative type for the affiliate marketers.
The service provider only pays the affiliate marketer whenever his referral performs a certain action in this type of affiliate network program. That is any moment the visitor he has referred actually buys something from the merchants website. Also, when the site visitor turns out to be the merchants lead.
As it turns out, the merchant saves a lot of money. Nevertheless, it is the more lucrative kind for the specialized affiliate. Commissions for PPP marketing usually come in the variety of 15% or 20% of the product sales.
Pay Per Performance affiliate programs can also be classified into 2 common types: pay per sales and pay per lead
1. Pay Per Sales. The merchant pays affiliates a specific amount anytime the referred website visitor buys a product from a merchants website business in this type of affiliate program.
Many affiliate marketers are paid often on a commission basis for their work. Then, there are other merchants who choose to pay a fixed fee compensation. It’s most always higher than what is paid out to the affiliate in a pay per click online affiliate marketing program. This is whatever the reason for the fee.
2. Pay Per Lead. A pay per lead affiliate program has a small difference from the PPS kind. Insurance companies, finance companies, or others who’s focus is leads for business to grow often use it.
Affiliates are paid when the referred visitors to a merchants website fill application forms or an application offer in this kind of affiliate program. It can be any alike form related to the business of the merchant. Being compensated for this kind of affiliate program has a fixed service charge. These are rate estimates for a set fee in the PPS type.
There are many other affiliate program kinds that exist other than these two types of online affiliate marketing. The differences depend on how involved the affiliate program is.
Single-tier, two-tier, multi-tier program
Then it can be categorized as single-tier or a two-tier. Even a multi-tier program. There are also different types of online affiliate marketing. Kinds that pay affiliates every time the referred consumer buys something from the merchants website.
Many types of programs may refer to different levels in an affiliate program. Payments received by the affiliate will depend on single-tier, two tier, or multi-tier. Affiliates are paid based on sales or traffic referred to the merchant on a single-tier program. All the online affiliate marketing types already mentioned fall under a single-tier classification.
Marketers are paid for website traffic or sales in the two-tier programs. The marketer has referred them to the merchants website. An affiliate is also paid for all sales or traffic referred by many other affiliates. Affiliates who have joined this program. His affiliate recommendation has made the difference.
Then multi-tier programs are the same. The affiliate receives additional commissions for a bigger number of affiliates. These commissions come from various tiers in the program.
Residual Income Marketing
Affiliate marketers are paid not merely once for residual affiliate programs. They are paid for each customer that is referred to a merchant’s website. The marketer is further paid each time a customer, that has been referred, returns to visit to the website. The customer purchases another product or service.
Being compensated for this kind of affiliate program relies on 1) a fixed fee or 2) products or sales percentage commissions. In particular, the very different online affiliate program types will work different for both merchants and affiliates alike. They will both usually have a unique list of their benefits.
Hopefully, you will have a good understanding of the different types of online affiliate marketing after reading this article. Also, how you can benefit from this knowledge. To your online marketing success!