Bill McRea

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.

There is only one main source for making any income from a website and that is a constant stream of targeted traffic. These days almost anyone can build a website, even an outstanding website but with no interested visitors, it just sits there. As the saying goes it takes money to make money and that holds true with Internet marketing and website traffic.

There is hope however, because it does not take a substantial investment to generate targeted traffic to your website.

Many of the high traffic websites online are employing multiple marketing tactics to generate traffic. Some invest a lot of money in advertising campaigns and other costly marketing methods. They are spending large sums of money to make even bigger money. Great for them but what about the rest of us who need low cost website traffic?

Some of the top low cost website traffic tactics also produce some of the most targeted prospects to your website, so at the risk of throwing another cliche’ at you. It’s not the quantity but the quality of the traffic that matters most.

Exchanging links with other related websites is one of the oldest and proven traffic generating methods online. However this method should be more than just creating a link page with tons of other websites plastered on it.

A good quality link exchange should be more than that. Perhaps a section of your website touches on a subject but is not your main niche, you could then link to another website for more in-depth information in return for them doing the same. This also provides added value for your visitors.

A key qualification in exchanging links with other websites is having similar content. They should share a general subject so that there is continuity in the information provided and helps target your traffic.

Link exchanges will also help raise your page rank and increase search engine listings. Search engines will rank sites higher in their listings that have quality inbound links from other related high-ranking sites. Its no secret that ranking high in search engines is the most effective way to generate low cost website traffic.

Traffic exchanges are another great low cost yet highly targeted traffic generating method. In fact you can join most any traffic exchange for free. You submit your website to the traffic exchange, and earn credits to get your website shown while you view other websites. You can bypass most of the drudgery of clicking by upgrading your account or buying credits.

Some may discount traffic exchanges as a waste of time or money but if used effectively it can drive highly targeted traffic to your website. Usually a short effective splash page or lead capture page are much more effective that just placing your sites main page into a traffic exchange. Remember the surfers are doing this to earn credits not necessarily to look at your site, so you must command attention with a good page to get the click to your site.

Traffic exchanges are also a great way to learn different marketing techniques. Keep en eye out for the pages that grab your attention and study them to learn how to create more effective lead capture or splash pages.

Article writing and submission is probably the most effective low cost website traffic generating method. There are thousands of websites that provides free space for articles to be submitted. If you are uncomfortable writing articles there are many freelance writers who are willing to do it for you for a small charge, but to save money, it is wise to learn how to write your own articles.

Your article topics should be focused on the theme of your website or about solving a problem that can be provided by visiting your website. Be careful not to blatantly plug your website or product in the article. Provide good tips and information on the topic showing off your expertise on the subject.

Including a resource box at the end of your article is how to get the targeted traffic to your site. You already proved your expertise on the subject in the article body, and if the reader got to this point now its time to get that click. Provide a short informative sentence about yourself or your website, while enticing them to learn more about the subject by clicking the link in the resource box.

Submitting your articles to as many websites as possible has two major benefits both providing low cost website traffic: Your article can be picked up off the article directory sites and used on other sites and passed around online. This gets you the advantages of inbound links described earlier and even more chances of targeted traffic after those website visitors read your articles.

Participating in online Forums only requires some of your time and nothing else. As you share your knowledge and proficiency in the subject of the forum with others online your reputation as an expert will grow. As you build your reputation in these online communities so does the reputation of your website.

Be careful not to spam any forums with outright ads for your website, and follow the forums rules about posting links. Most forums will only allow links in your signature, similar to an articles resource box. Most forums will always welcome new members as long as you don’t just blast on the scene with both guns blazing throwing links all over the place just promoting your website. You will have much better results by keeping it low key and adding valuable input when you feel others will benefit by your contribution.

As you can see there are multiple ways of generating low cost website traffic. Start out with what you can afford and use your profits to invest in some of the more expensive methods when you are generating a positive income.