Affiliate Programs

Affiliate Programs



Affiliate marketing is a web-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.

The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Different Types Of Affiliate Marketing

Pay Per Click (PPC)

In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site.

Pay Per Performance (PPP)

In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor becomes a lead.Commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

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

Pay Per Sale (PPS)

In PPS type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee.which is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.


Pay Per Lead (PPL)

In this type of affiliate marketing, 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.It is often used by insurance and finance companies and other companies who rely on leads for their company to grow.Compensation for this type of affiliate marketing is based on a fixed fee.

Single-Tier Affiliate Marketing

PPS, PPL, and PPC fall under the single-tier classification. 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.

Two-Tier Affiliate Marketing

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

Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

Residual Income Affiliate Marketing

Residual income is an integral part of an affiliate marketing plan., it is of great benefit to all partners of the marketing program.In residual income affiliate marketing, the affiliate gets paid not only once but also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

Residual income creates a very lucrative income program for the affiliate marketers.Therefore residual income is a method whereby a long and successful affiliate marketing plan is mutually beneficial to all partners.

Top ten Affiliate Programs

Commission Junction - One of the leaders. Manages affiliate programs for all kinds of products.
Click Bank - All downloadable affiliate products.
LinkShare - Claims to be the largest pay-for-performance affiliate marketing network.
Azoogle Ads - Also claims to be the largest performance-based online advertising network.
Amazon - One of the oldest and most successful affiliate programs.
Context Links for Amazon’s Affiliate Program - Auto creates affiliate links to Amazon’s products.


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