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The Different Types Of
Affiliate Marketing

 

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Affiliate marketing programs has never been as popular before as it is today. People recognizes the benefits of affiliate marketing now than they were before.

Today, Both the merchants and the affiliates realizes that affiliate marketing can benefit both of them. 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 programs the same? Are the benefits the same? Or which affiliate program that work better than the others.
 

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There are different types of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate programs can be put under two  categories.

  1. Pay Per Click (PPC): PPC is the most popular type of affiliate marketing for small websites the easiest way for them to earn money. In this affiliate program type, the affiliate earns affiliate commissions whenever someone clicks through the merchant's banner or text ads even if the visitor he referred does not purchase anything from the merchant's site. However, typical affiliate commissions for PPC affiliate programs are small, usually not exceeding a dollar for every click.
  2. Pay Per Performance (PPP): PPP affiliate marketing is 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 the referral actually buys something from the merchant's site or becomes a lead. Affiliate commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales. Some products in affiliate networks like ClickBank and PayDotCom pays as much as 75%!

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

  1. Pay Per Sale (PPS): In a pay-per-sale type of affiliate program, the merchants pay an affiliate commission to the affiliate whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. The affiliate commission paid is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.
  2. 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 program, 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. Affiliate commission for this type of affiliate program is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from the above types of affiliate marketing, a lot of other affiliate marketing types exist. Based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing.

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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 affiliate commissions 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 for the recurring sales also from the same customer. Affiliate commissions 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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More Affiliate Marketing Tips

How to Set Yourself Apart From Other Affiliates
Here are some solid tips for affiliate marketers to stay in affiliate marketing business and outwit other competitors of yours... Click here to read..

Website Or No Website For The Affiliate Marketer …That's The Question
One can do affiliate marketing even without a website! You can be an affiliate marketer without a website and really start promoting...
Click here to read..


How To Best Select An Affiliate Program
The key to an affiliate marketer’s success is to choose a good affiliate program rather than opting for the best affiliate program! The reason is...
Click here to read..


 

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affiliate marketing - Google News

Best practices for affiliate marketing on Pinterest - InternetRetailer.com

View Original Article Mon, 20 Jun 2016 15:20:34 GMT

InternetRetailer.com

Best practices for affiliate marketing on Pinterest
InternetRetailer.com
In early May, Pinterest lifted its ban on affiliate links in pins?huge news for publishers and advertisers alike. Pinterest emerged as an online destination for consumers looking for new trends and products since its creation in 2010, and with over ...

How To Run A Successful Affiliate Marketing Program - Business 2 Community

View Original Article Sat, 18 Jun 2016 14:54:07 GMT

How To Run A Successful Affiliate Marketing Program
Business 2 Community
Affiliate marketing has become a growing trend for simple, easy-to-launch marketing solutions, but the lasting benefits are much more complex. Affiliate marketing is more than a popularity contest with spammy-looking content. Programs that are ...
Six Pricey Mistakes Affiliate Entrepreneurs Make In Their CareerTheSequitur.com

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CBS Names VP of Affiliate Marketing - TVSpy

View Original Article Mon, 13 Jun 2016 20:57:38 GMT

TVSpy

CBS Names VP of Affiliate Marketing
TVSpy
?Presently, as the Executive Director of Broadcast Marketing, Court has done a tremendous job strengthening the relationship between CBS News, Newspath, the CBS broadcasts and our affiliate newsrooms around the country,? Marsha Cooke, vp of CBS ...

Transparency over data is key to the development of affiliate marketing - The Drum

View Original Article Tue, 14 Jun 2016 11:45:32 GMT

The Drum

Transparency over data is key to the development of affiliate marketing
The Drum
?By passing back additional data parametres they can better understand the value driven by affiliate marketing activity,? he adds. Meanwhile, fellow panel participant and managing director of Rakuten Attribution, James Collins, says the industry as a ...

affiliate marketing - Yahoo News Search Results

Affiliate Marketing OPM Experience Advertising Has Been Ranked the Top Affiliate Marketing Company

View Original Article Tue, 07 Apr 2015 13:05:39 -0700
Affiliate Marketing OPM Experience Advertising has been Ranked the Top Affiliate Marketing Company. (PRWeb April 07, 2015) Read the full story at http://www.prweb.com/releases/affiliate/OPM/prweb12637318.htm

Recent Study Reveals: Starting an Online Business Is On The Rise In 2015

View Original Article Wed, 08 Apr 2015 15:18:55 -0700
SatoriPrime.com, a leader in entrepreneur education confirms that affiliate marketing can be a powerful tool that families and entrepreneurs can use to create new streams of income to support and secure their financial future. This simple strategy outlines a quick-start guide to getting started with an online business, gives access to informative training and reveals how to avoid some of the ...

Affiliate Marketing Programs Guide: Free Guide to Affiliate Marketing and Performance Marketing for Companies ...

View Original Article Fri, 20 Mar 2015 05:40:00 -0700
VANCOUVER, British Columbia, March 20, 2015 /PRNewswire/ -- Affiliate Marketing and Performance Marketing are no longer unchartered territories, thanks to the Affiliate Marketing Programs Guide written by Frank Ravanelli.  This guide to affiliate marketing, after being featured as daily pick on LinkedIn eCommerce and Sales channels, quickly became the most popular post of the month, and one of ...

CPA Affiliate Network Affiliate Ads LLC Announces Launch of New and More User-Friendly Website

View Original Article Tue, 24 Mar 2015 06:00:00 -0700
In Addition to Being Easier to Navigate, the New Website Helps Explain what the Team at Affiliate Ads Does LOS ANGELES, CA / ACCESSWIRE / March 24, 2015 / The founders of Affiliate Ads LLC have just announced ...

affiliate marketing - BingNews

Four Insider Tips For Developing A Successful Affiliate Marketing Strategy

View Original Article Fri, 10 Jul 2020 05:07:00 GMT
Affiliate marketing can be a great tool for business growth. It can help you gain new customers, drive more sales, create awareness for your business and generate traffic and word of mouth. Like any ...

Affiliate Marketing Fraud To Cost $1.4 Billion Globally in 2020

View Original Article Wed, 08 Jul 2020 02:15:00 GMT
Affiliate marketing stands at $15 billion in 2020, however, at least 9% of all transactions are affected by fraud.

Jessica Brown Talks New Role, Affiliate Marketing and Team Plans

View Original Article Tue, 07 Jul 2020 07:31:00 GMT
Settling into her role as Agency Partner at Awin, Jessica Brown discusses her Client Partnerships team plans in the coming months, the industry's response to COVID-19 and key opportunities for ...

Button Unveils New Capabilities, As Affiliate Marketing Finally Advances

View Original Article Wed, 08 Jul 2020 12:26:00 GMT
The mobile commerce marketing company Button on Wednesday unveiled a product suite called Evolution, including pilot partners Uber Eats, Groupon and BuzzFeed, with more tools for attribution and ...

 

 

 

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