Different Types of Affiliate Marketing
Affiliate marketing programs were not as popular in the past as they are today.
Why? There are many possible reasons. But the most likely reason is the fact that the benefits of affiliate marketing are now clearer to more people than ever before.
Today, both merchants and affiliates can clearly see that affiliate marketing works for both. Merchants see affiliate marketing today as an opportunity to promote their products at a lower cost. Affiliates, on the other hand, see affiliate marketing as an easy way to profit online by doing what they love to do: create websites.
 |
| Different Types of Affiliate Marketing |
Just as affiliate marketing has grown in popularity, so has the way people think about affiliate marketing. No longer is affiliate marketing thought of as an alternative way for merchants to promote their products or as an additional source of income for affiliates. For merchants and affiliates, affiliate marketing is considered a major source of profit and revenue.
So the question now is, what kind of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Do they have the same benefits? Or are there affiliate marketing programs that work better than others?
There are actually many different types and classes of affiliate marketing programs, depending on how you categorize them. The most basic affiliate marketing programs fall into 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 is probably the easiest way to generate revenue. In this type of affiliate marketing, the merchant pays the affiliate a commission each time a visitor is referred to his or her site, i.e., each time someone clicks on the merchant's banner or text ad. The affiliate earns a fixed commission even if the referred visitor does not purchase anything from the Merchant's site. However, the typical commission for PPC affiliate programs is small, usually no more than $1 per click.
- Pay-Per-Per-Performance (PPP)
PPP affiliate marketing is the most popular among merchants and the most lucrative type for affiliates. In this type of affiliate program, the Merchant pays the affiliate only if the visitor referred by the Merchant actually leads to an action, such as purchasing something from the Merchant's site or the visitor becoming a lead. This represents significant savings for the Merchant. On the other hand, PPP affiliate marketing commissions range from 15% to 20% of actual product sales, making it the most lucrative type for dedicated affiliates.
- Pay-for-performance affiliate marketing can be further classified into two types: pay-per-sale (PPS) and pay-per-lead (PPL).
- Pay-Per-Sale (PPS)
In pay-per-performance affiliate marketing, the merchant pays the affiliate a fixed commission each time a visitor referred by the affiliate actually makes a purchase. Affiliates are often paid on a commission basis, although some Merchants pay a fixed fee. However, whatever the fee structure, it is generally higher than the fees paid to affiliates in pay-per-lead affiliate programs.
o Pay-Per-Lead (PPL)
Pay-per-lead type affiliate marketing is a slight variation of the PPS type and is often used by insurance and financial companies that rely on leads for company growth. In this type of affiliate marketing, the affiliate is paid each time a referred visitor goes to the merchant's site and fills out an application or similar form related to that company's business. Compensation for this type of affiliate marketing is based on a fixed commission rate that is nearly identical to the fixed commission rate for the PPS type.
- In addition to these three types, various other types of affiliate marketing exist. If the classification is based on the depth of the affiliate network, it can be categorized into one-tier, two-tier, and multi-tier types. There is also a type of affiliate marketing in which the affiliate is paid every time a referred customer purchases something from the merchant's site.
- One-Tier, Two-Tier, and Multi-Tier Affiliate Marketing
Types of affiliate marketing are those in which payments are made based on different levels or tiers of the affiliate network. In a one-tier affiliate marketing program, commissions are paid only based on direct sales or traffic referred by the affiliate to the merchant. The types of affiliate marketing mentioned earlier (PPS< PPL, PPC, etc.) all fall under the single-tier classification. - In the 2-tier affiliate marketing program, affiliates receive commissions not only on direct traffic and sales to the merchant's site that they refer but also on traffic and sales referred by various other affiliates who have joined the affiliate program through their recommendations. referred by various other affiliates who joined the Affiliate Program through their recommendations. Multi-tier affiliate marketing is similar in that the more affiliates in different tiers of the affiliate network, the more additional commissions an affiliate can earn.
- Residual Income Affiliate Marketing
Affiliates are not paid only once for each customer they refer. Affiliates are also paid if the referred customer visits the site again and purchases another product. This type of affiliate marketing compensation is based on either a percentage of sales or a fixed commission system.
Thus, different types of affiliate marketing can have different effects on merchants and affiliates. Which type of affiliate marketing works best for you? That is not for me to say. Rather, it is up to you to choose which type of affiliate marketing program best suits your needs and characteristics.