Affiliate marketing was never more profitable and popular than today. Benefits of it have become so clear to outnumbering people more than ever before. Both affiliates and merchants are meeting the most of it, while merchants have great chance to advertise products at the lowest cost, the affiliates make great earnings by simply doing what they love. It may start as an alternative approach of additional earning but today is becoming a main source of profit. Between various types of affiliate marketing, there are two main categories: pay-per-click (PPC) and pay-per-performance (PPP) marketing.
This is the best and most convenient type for little websites to earn some money. This is a way of marketing where the affiliate is paid whenever a customer refers to his site, more exactly when someone clicks through a merchant’s advertisements. Affiliate makes earnings no matter a customer purchases something or not from the website. Usual fee for PPC affiliate programs is a dollar for every click.
This is a type where the merchant pays affiliate when his referral corresponds to action meaning whenever a customer purchases something over the website. This makes significant cost savings for the merchant. But it is not bad also for the affiliates, the commission usually goes from 15% to 20% for every actual product sale. This type may also be categorized in two types which are very popular today, Pay-per-sales (PPS) and Pay-per-lead (PPL).
Pay-per-sale is a type where affiliates are usually paid on commission basis. Whenever the customer refers to the merchant’s website, other words purchases, the merchant pays a particular charge to the affiliate. This type usually gets more money to the affiliates than the pay-per-click type.
Pay-per-lead is a type relied on the leads for companies to grow so this one is mostly used by financing or insurance companies. This is based on the action where the customer fills in the application on the website of the certain business company which is obligated to pay the affiliate after this refer. Here the rates of fee are approximate to the charge in the PPS type.
These were some of the basic types in affiliate marketing but there are really various types today and some also popular, based upon the various levels of tiers in the affiliate programs by which payments ae made.
Single-Tier Affiliate Marketing
PPS, PPL and PPC fall under this category where affiliates are paid only upon direct traffic or sales describing merchant.
Two-Tier Affiliate Marketing
Besides being paid by the direct traffic or sale affiliate describes merchant’s website, affiliate here is also paid on every sale or traffic referred by other affiliates signed up by his recommendation to the affiliate program.
Multi-Tier Affiliate Marketing
This is the same work system as in the two-tier type only here comes a bigger number of affiliates in various tiers in the affiliate network.The popularity of the affiliate marketing types is changing drastically with time so as we said before it is important to keep up with market research which will help you make a better decision while choosing most suitable affiliate program for yourself.