subject: Choosing The Most Effective Affiliate Program [print this page] Benefits of Affiliate marketing are obvious for both affiliates and the merchants. Investment needed by merchants is less for affiliate marketing to get the word out about their goods and services for very little money. Affiliates look at this type of network marketing as a simple way to make money using their computer by doing what they enjoy.
If you are interested in affiliate marketing, you need to figure out which type is best for you. Affiliate marketing types should be compared on the base of benefits. The most recognized types of affiliate marketing programs are pay-per-click (PPC) and pay-per-performance (PPP).
Pay-Per-Click (PPC): PPC is preferred type of affiliate marketing by affiliates who run a smaller website because it allows them to make money pretty easily. With PPC affiliate marketing, a merchant makes a payment to affiliates when they refer a visitor to the merchant's website by the visitor clicking on their text ads or banners. Affiliates receive get a set amount of money for the visitor going to the merchant's website even if a purchase is not made at the website. PPC affiliate marketing is not known to pay a lot of money with the average payment being less than a dollar per click.
Pay-Per-Performance (PPP): PPP affiliate marketing is an affiliate marketing type preferred by merchants as well as affiliates. With these affiliate marketing programs, merchants make a payment to the affiliates when a visitor they send to the merchant's website makes a purchase or signs up for a newsletter. This type of affiliate marketing pays very well for hard working affiliates along with benefits for merchants. The commission rates are usually between 15% and 20% of the sale price.
Affiliate marketing can also be categorized into Single-Tier, Two-Tier and Multi-Tier Types. These three types of affiliate marketing are classified by the number of tiers that exist in the affiliate network where payments are made. With single-tier affiliate marketing, affiliates make money only on the sales or traffic that they send to the merchant's website. Two-tier affiliate marketing pays affiliates for both referring the traffic and bringing sales into a merchant's website. Multi-tier affiliate marketing allows affiliates to have several layers of affiliates underneath them that they earn a commission from.
With residual income affiliate marketing, affiliates make money not just for the customer's first purchase at the merchant's website but also for future purchases they make. This type of affiliate marketing usually uses a fixed fee payment or a percentage of the sales in the form of a commission.
The different types of affiliate marketing are all unique and operate slightly differently. They have their own pros and cons that make them right for different types of people involved in network marketing.
