Different Types Of Affiliate Programs
Date Added: April 16, 2008 10:20:12 PM
Affiliate marketing is a great way to start your online business. There are different types of affiliate programs available. Before starting your business, you must have a good knowledge about the nature of the different programs available so that you can identify which program will be suitable for you. By doing this you will save time and wasted effort on marketing efforts and programs that are not suitable for you. The different types of affiliate programs are discussed below:
Pay per click (PPC) programs.
In Pay Per Click programs, the affiliate is paid each time a visitor visits the merchant's website through the affiliate's link, irrespective of whether he/she buys anything from the site or not. The merchant may offer text or banner ads which the affiliate shows on his/her website. When any visitor clicks that ad and visits the merchant website, the affiliate gets paid. This type of affiliate marketing has become very popular.
Pay Per Performance (PPP)
These types of affiliate programs are very lucrative. Here, the affiliate is paid only when the visitor buys some product or signs up for some service which the merchant is offering. The first one is known as 'Pay Per Sale' while the other one is known as 'Pay Per Lead'. These programs are very lucrative because the commission for 'Pay Per Sale' programs may vary from 10% to 50%. So, if the price of a product is $100 then the commission on sale would be $50. For 'Pay Per Lead' programs, the commissions are also good. Many insurance and finance companies pay up to $30 per lead.
Tier Affiliate programs
In these types of programs the affiliates are paid additional commissions to refer other people to become new affiliates. These may be either two tier or multitier programs. In two tier programs, the affiliates are paid commissions not only on their own sales but also on the sales made by their referrals. In the multitier programs, the affiliates also get commissions on the sales made by their referrals' referral, in addition to their normal commissions.
Programs paying residual income
These are actually network marketing programs, where you are paid to refer other members to the network. Members are generally required to pay a fixed amount per month. The affiliate gets paid so long his referrals remain members and pay the monthly membership fees.
By going through the different types of affiliate marketing programs, you can evaluate each of them to determine which one suits you best and can proceed accordingly.
