Bill McRea

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What You Need To Know About Affiliate Internet Marketing

23. Apr, 2010 0 Comments

Since the start of commerce on the net, a growing number of people are making their livelihood on the internet using affiliate internet marketing. If it’s a product, service or opportunity you are thinking of promoting, there are 000′s of options available and the majority of programs have free sign up. Being an affiliate you do not have to concern yourself with stocking the product, shipping it, billing the customer, organising refunds or even take care of support. All of this is handled by the actual vendor of the product. Your job is to simply promote the product/opportunity and drive traffic to the affiliate site.

It may be easy to sign up to an affiliate internet marketing program, but it is not always easy to promote the products. Marketing can be hard for some people. One option for those who find marketing hard is to sign up to an affiliate program that offers training material to teach you how to market their product. Another option would be to sign up to an internet marketing training club or membership to a site that offers exclusive internet marketing strategies and tools. This way you set yourself above the rest who also sign up to the same affiliate opportunity. With all these affiliate programs you are provided with a URL/web link with your unique tracking id in it. Many of the opportunities that are marketed fall under the heading of MLM or multi-level marketing. This is where you are not only paid commission on every sale but you are rewarded for each customer who signs up as a member.

The great appeal of affiliate internet marketing for most people is that they can do the work from home without having to worry about competing with colleagues or dealing with superiors. You are in a sense your own agent. As more and more people are dealing with economic uncertainty, the promise that you will make great sums of income, often without having to invest very much effort , is very appealing. While some people pursue these opportunities on a part-time basis with the hope of building a residual income stream for the future, there are many reports of people pursuing these opportunities on a full-time basis and earning considerable fortunes.

Sadly, for a lot of people, this dream creating a vast income that can be multiple times your current take home pay while using a system that earns money 24-7 is a bit of a fairy tail. There actually is a very lucrative opportunity out there in the form of affiliate internet marketing programs but the unfathomable earnings are made by a small number of smart and dedicated internet marketers who realise the value in this online economy. These people use all the information they have gotten through their predecessors products and apply strategies on a consistent basis to produce the result they are looking for.

With the vast range of affiliate internet marketing opportunities available, it can be difficult to choose the right product for you but if you do you may well find something that will earn money easily for you. Rather than pursuing the opportunities that offer overnight success, many of these programs do work if you are willing and able to put the time and energy into building your new internet business.

There are some simple proven systems out there that can make you small amounts of money over a consistent period usingAffiliate Online Marketing Start making your 1st stream of Online income income using Online marketing now

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Affiliate Marketing

Different Varieties Of Affiliate Marketing

01. Dec, 2009 0 Comments

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.

To Succeed, read Rajagopalan’s blog, Benefiting From Two Tier Affiliate Programs, Visit Top 100 Affiliate Marketing Programs

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