Bill McRea

Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people’s outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

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.

Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an actionthat is whenever the visitor he has referred actually buys something from the merchant’s site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

oPay 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.

oPay 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.

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. 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.

In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant’s site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant’s site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

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Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of online affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate online marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost.

The affiliates, on the other hand, sees affiliate online marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate online marketing has shifted into greater heights, so has the people’s outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate online marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click known as PPC, and pay-per-performance known as PPP.

- Pay Per Click – PPC

PPC is the most popular type of affiliate online 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.

- Pay Per Performance – PPP

PPP affiliate online marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates 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 a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate online marketing can be further classified into two popular types: pay-per-sales known as PPS and pay-per-lead known as PPL.

- 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.

- 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.

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 online marketing are based on the different levels or tiers in the affiliate network by which payments are made. 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.

- In two-tier affiliate internet marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant’s site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation.

Multi-tier affiliate internet marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

- Residual Income Affiliate Internet Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant’s site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate internet marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits.

Which type of affiliate internet marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

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What Is {Affiliate marketing?~Definition of Affiliate marketing~Affiliate marketing Definition~Affiliate Marketing}

Affiliate marketing creates an association between multiple players:

1) the Merchant (sometimes called the Advertiser, or Partner),

2) the Affiliate (sometimes called the Publisher), and

3) the Customer – If we look at the Affiliate Program in its entirety, we must include an additional player as well.

The Merchant offers the product for sale, and the Affiliate tries to sell that product or service for the merchant and/or drive traffic to the merchant’s website. As a result, the Merchant agrees to pay the Affiliate a commission for sales and/or established results.

Payment Arrangements

Payment plans are generally performance-based (which effectively shifts some of the risk from the Merchant to the Affiliate) and arrangements are often structured as Pay Per Click (PPC), Pay Per Sale (PPS) and Pay Per Lead (PPL) – or some mixture.

Affiliate Marketing Classes

If we separate affiliate marketing with respect to levels, we have 4 separate classifications:

1. one-tier,
2. two-tier,
3. multi-tier, and
4. residual income programs

Single-Tier Affiliate Marketing Programs

In Single-Tier {Affiliate Marketing}, the Affiliates receive the commission, only for sending visitors or sales to the merchant’s website. Pay/performance and pay/click are included in this category.

Two-Tier Affiliate Marketing

In Two-tier marketing~Two-Tier Marketing}, the Affiliate gets paid commission for every action performed by the people he’s referred directly, plus he gets paid the commission when any of the people he’s personally referred gets paid.  Thus, he has a two-tier commission plan and the Affiliate earns both directly and indirectly.

Multi-Tier Affiliate Marketing Program

The multi-tier marketing} is very similar to Two-Tier Marketing, but here, the Affiliates get paid for the revenue generated by their affiliated affiliates in multiple, unlimited, levels.

Residual Income Marketing Program

In Residual Income Affiliate Marketing~Marketing}, the Affiliate is compensated for every sale that is made by a person referred by him. In Residual marketing, Affiliates get the commission for every sale that his referral makes at the Merchant’s website.

In order for this to work properly, the first time, the traffic must originate from the Affiliate’s personal affiliate link. Then, when the same person returns to the Merchant website (even without using the affiliate link), the Affiliate will be paid for every sale made by the individual.

Cookies make this strategy work.

A “cookie” is created on the first-time visitor’s computer. This cookie defines the Affiliate’s ID. Cookies usually cease to be valid after 3 months; however, some may be effective longer.  Every time a visitor comes to the Merchant website, his computer is queried for any previously created cookie. If a cookie is found, the Affiliate Id is retrieved and the Affiliate gets credit for any anything the visitor buys.

Everybody Wins

When the affiliate marketing relationship is designed well and well-executed, everybody wins:

1. The Merchant receives greater market exposure and market penetration, unearthing customers that would normally be outside the Merchant’s market reach.
2. The Affiliate generates a commission for online sales, without needing to establish a full e-commerce site or needing to manage product inventories.
3. The Customer acquires products or services that s/he would otherwise not find – at least not readily.

Properly done affiliate marketing is a Win-Win-Win situation.

Discover a successful money-making program that works – and does the majority of the work for you:  obtain the FREE MaxPro Report and Audio here.

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