The Different Types of Affiliate Marketing
Affiliate marketing has never been as popular before as it is today. Why? There can be several reasons behind this. The most common reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now as time passes.
Today, both the Advertiser and the affiliates can see clearly that affiliate marketing working profitable for both Advertiser and the affiliates. The Advertiser sees affiliate marketing today as the chance to advertise their products at a lower cost and to the many people at a time. 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 and using different type of promotional Methods which Advertiser ask for.
Just as the popularity of affiliate marketing has shifted into greater heights and increasing day by day, so has the people’s outlook about it changed as there is more user now with internet and smart phones No longer is affiliate marketing considered today as an alternative method for the Advertiser to advertise his products, or as a source of additional income for the affiliates. For Advertiser and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.
The different classes of affiliate marketing, mainly falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).
• Pay Per Click (PPC)
PPC – pay-per-performance is the most popular type of affiliate marketing for affiliates with small websites and small web masters, and probably the easiest way for them to earn money. In this affiliate marketing type, the Advertiser pays his affiliate whenever a visitor is referred to his site which refer to number of unique visitors, that is whenever user clicks through the Advertiser ‘s banner or text ads which is displayed on websites. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the Advertiser ‘s site. However, payouts for PPC affiliate programs are small, usually not exceeding a dollar for every click.
• Pay Per Performance (PPP)
PPP – Pay Per Performance affiliate marketing is the most popular among Advertiser and is also the most profitable type for the affiliates. In this type of affiliate program, the Advertiser only pays the affiliate whenever his referral convert 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 and affiliate get paid commission on that lead. Its save lot of money for the Advertiser. On the other hand, it becomes the most profitable type for the legit affiliate.
Pay-per-performance affiliate marketing can be further classified into two other types: pay-per-sales (PPS) and pay-per-lead (PPL).
o Pay Per Sale (PPS)
In a pay-per-sale type of affiliate marketing, the Advertiser 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 when there is any sales occur with that affiliate ids. 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.
o 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.
Some Other Different Types of Affiliate Marketing methods.
Cost per click (CPC) is a method website use to bill based on the number of times a visitor clicks on an advertisement on ads which is displayed on web sites. CPC is the amount that a website publisher receives when a paid advertisement on the site is clicked.
CPA- Cost Per Acquisition
Cost Per Acquisition under this Advertiser only pays commission each time a website visitor makes a purchase that can be directly traced to having clicked on that ad by the user and any purchase done thought that ads.
It is possible for the number of ad impressions to differ from the number of visitors to the website where the ad is displayed. For example, an ad might receive placement in two locations on a website, such as a vertical side banner horizontal banner across the top of the page and a horizontal banner alongside the page’s text. In this scenario, the advertiser pays for two impressions per pageview as per numbers of page view and impression on that page.