Types of Affiliate Marketing

Group of business people brainstorming

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

The advantages of affiliate marketing is more noticable today than in the past. This is among the primary factor for the tremendous popularity of affiliate marketing programs amongst many thousands of online marketers.

Business people pointing at sticky notes
Side view of business people pointing at sticky notes on glass, brainstorming concept

Newest web technology has made it possible for the affiliate online marketers to get their stats and earnings figures the minute they make an affiliate sale. It is now possible to use companies like PayPal for payment and receipt processing. This has actually highly reduced the time that an affiliate online marketer requires to wait for his payments to be gathered from the merchants.

Both the affiliates and the merchants have now realised that affiliate marketing is effective for both of them. The merchants view affiliate marketing as a chance to promote their products at a much lower cost. On the other hand, the affiliates see affiliate marketing as a straightforward way of earning earnings online by doing something which they like most, and that is web publishing.

Simply as the appeal of affiliate marketing has gone into overdrive, likewise the outlook of individuals has altered for the better about affiliate marketing. Affiliate marketing is no longer thought about as a secondary method of marketing by the merchants, or as an extra earnings source by an affiliate marketer. For affiliates and merchants alike, affiliate marketing is now considered as a primary source of earnings and profits.

We now need to evaluate what type of affiliate marketing will work best for any person? Are there any differences in affiliate marketing programs?

There are really ranges of affiliate marketing, and the types will depend upon how you are going to classify them. The main classification of affiliate marketing programs falls under two classifications: 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 little websites, and probably the simplest way for them to earn cash. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his website, that is whenever someone clicks through the merchant’s banner or text ads.

  1. Pay Per Performance (PPP) – PPP affiliate marketing is well liked among merchants and is likewise the most gratifying type for the affiliates. In this kind of affiliate program, the merchant pays the affiliate only when his referral converts into an action – that is whenever the visitor he has referred in fact purchases something from the merchant’s site or when the visitor ends up being a lead. This implies that the merchant conserves a lot on his own direct marketing efforts. On the other hand, this type of affiliate marketing ends up being economically most gratifying for the devoted affiliate, for commissions in PPP affiliate marketing usually comes in the variety of 15% to 20% of the actual item sales. And, in the case of e-products or e-goods, the affiliate commission can go as high as 70 – 75% of the list price.

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

Hand holding using mouse clicking
Hand holding using mouse clicking

a) Pay Per Sale (PPS) – In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a specific charge whenever the visitor he has actually referred to the merchant’s site really purchases something from the merchant’s website. Affiliates are frequently paid on commission basis, although other merchants would decide to pay a repaired fee. But no matter what the basis of the charge is, it is generally greater than the fee paid to affiliates in a pay-per-click affiliate program.

In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s website fills up an application kind or any similar type related to the company of the business. Aside from these three particular types of affiliate marketing, a lot of other affiliate marketing types exist. There is also another type of affiliate marketing that pays the affiliate each time the consumer he has actually referred purchases something from the merchant’s site.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These kinds of affiliate marketing are based upon the different levels or tiers in the affiliate network by which payments are made.

A) Single Tier – In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has actually referred to the merchant. All the previously discussed affiliate marketing types (i.e. PPS, PPL, and PPC) fall under the single-tier classification.

B) Two Tier – In two-tier affiliate marketing programs, the affiliates are not only spent for the direct traffic or sales that he gives the merchant’s site, however likewise on every traffic or sales referred by other affiliates who joined as sub-affiliate of the above affiliate marketer.

C) Multi Tier – Multi-tier affiliate marketing works the same method, although the affiliate gets extra commission for more variety of levels of affiliates in various tiers in the affiliate network.

D) Residual Income Affiliate Marketing – In this type, apart from the affiliate earning money for

Simply as the appeal of affiliate marketing has gone into overdrive, similarly the outlook of people has actually altered for the much better about affiliate marketing. Affiliate marketing is no longer thought about as a secondary method of marketing by the merchants, or as an extra income source by an affiliate online marketer. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his website, that is whenever someone clicks through the merchant’s banner or text ads. On the other hand, this type of affiliate marketing becomes financially most rewarding for the devoted affiliate, for commissions in PPP affiliate marketing typically comes in the range of 15% to 20% of the actual item sales. Aside from these 3 particular types of affiliate marketing, a lot of other affiliate marketing types exist.

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Group of business people brainstorming
Online Marketing

Top three methods to Generate Leads in 2020

Lead generation, information solutions, digital advertising and marketing servicesThe objective of a company is to develop opportunities as well as make sales, as well as

Blog word and newspapers
Online Marketing

Blog is but a component of Internet Marketing

Internet marketing and Blog are not the same thing, since internet marketing is a broad principle with many smaller ideas beneath it, and article marketing

Do You Want To Boost Your Business?

drop us a line and keep in touch

العربية简体中文NederlandsEnglishFrançaisDeutschहिन्दीItalianoPortuguêsРусскийEspañolதமிழ்