Affiliate marketing is gaining popularity day by day because of the increasing consciousness amongst the masses about it. Merchants as well as the affiliates have realized that affiliate marketing proves beneficial for both of them. Affiliate marketing gives the merchant the opportunity to advertise their products at a low cost while the affiliates find affiliate marketing as an easy way to earn money online and that too by doing something that they could enjoyThe perception of people about affiliate marketing has undergone a sea change with the rising popularity of affiliate marketing. Today, no one considers affiliate marketing as an alternative method of advertisement of products by a merchant or as a source of additional income for an affiliate. As of now, affiliate marketing has become the main source of profits and revenues for many the merchants and affiliates.Now, there can be a number of questions that could be asked about affiliate marketing. For example, what type of affiliate program should one opt for or does all affiliate marketing programs accrue the same benefit or are all the affiliate marketing programs the same deep down or are there affiliate marketing programs that prove to be more beneficial than the others.It is true that there are different types of affiliate marketing but these types surely depend on the way one classifies them. However, fundamentally affiliate marketing programs can be classified into two heads-pay per click (PPC) and pay per performance (PPP).o PAY PER CLICK (PPC) AND PAY PER PERFORMANCE (PPP)PPC is the most popular as well as the easiest way of earning money for affiliates having smaller websites. An affiliate gets paid when a visitor is referred to his site i.e. when a user clicks through the merchant’s banner or text ads. This payment to the affiliate does not depend on whether the visitor makes any actual purchase on the merchant’s site. Contrary to that, under PPP affiliate marketing the affiliate gets paid only if the referred visitor actually makes any purchase or if the referred visitor turns into a lead. Due to this difference, the returns on PPC for an affiliate would be comparatively less than PPP. PPP affiliate marketing is considered a better bet for both the merchant as well as for the affiliates.Similarly Pay Per Performance (PPP) affiliate marketing has yet been classified into two categories: – pay per sales (PPS) and pay per lead (PPL). As the name suggests under the PPS system, the affiliate only gets paid if actual sales is made while under PPL affiliate system, the affiliate gets paid if the visitor fills up an application form or any such similar form related to business of the company. This kind of system is used by companies which depend on leads for their growth like finance and insurance companies.o SINGLE TIER, TWO TIERS AND MULTI TIER AFFILIATE MARKETINGThese are different types of affiliate marketing programs depending on the depth of the affiliate network. If the affiliates only get paid on the basis of direct sales or traffic that he has referred to the merchant’s site (for example-PPS, PPL and PPC), this kind of program comes under single tier affiliate marketing. Similarly, if he gets paid for the direct traffic that he has referred and also for every traffic or sales that has been made by affiliates recommended by him, he comes under the two tier affiliate marketing. In multi tier affiliate program, the affiliate gets paid like two tiers but besides that he also gets paid for other affiliates in different tiers in the affiliate network.o RESIDUAL INCOME AFFILIATE MARKETINGThe affiliate gets paid not once but every time the referred customer makes a purchase on the merchant’s site. The payment may be made as a fixed amount or as a percentage of the sale amount.Thus, we find that there are a number of affiliate marketing programs and the choice that you make must depend on your own convenience and requirement.
Affiliate marketing has been described in various ways but basically they all have the same meaning. On the Internet today affiliate marketing has solidified its place in the world of e-commerce business. Essentially, affiliate marketing is a cooperative effort between a merchant and the affiliate’s website.From a merchant’s perspective, for many years now, affiliate marketing has proven to be very cost effective. By teaming up with various website owners merchants can now essentially have a World Wide Web sales staff operating strictly on commission with no other overhead. This is a very attractive scenario for the merchant or advertiser and with today’s explosive growth of online buying it has become a win-win business model for both the merchant and the website owner.Each and every day more and more people come across and become more interested in affiliate marketing and how they can make money from participating. And just like any new startup business the failure rate in affiliate marketing is quite high. Most people new to affiliate marketing don’t understand the intricacies of affiliate marketing and what it takes to be successful with an affiliate website.When I work with people just getting started in affiliate marketing probably the biggest misconception that people who are just getting started have his understanding the difference between advertising and marketing.I would say that the vast number of affiliate marketing sites that I work with and come across would be more accurately define as affiliate advertising. These sites generally will not last very long in the competitive arena of affiliate marketing. Conversely, I also work with people who go to the other extreme and believe that they have to be the “seller” of whatever product or service they feature on their website. The truly successful sites and the ones that make a good living for the website owner understand what it means to market not only their website but their affiliate product as well. Certainly, selling and advertising are components of marketing but they have to be combine in an overall consistent approach that ultimately makes their websites sell.In the affiliate marketing business model the affiliate is compensated for every visitor that they send to a merchant site and then purchases from the merchant a product or service being offered. Affiliate compensation can vary greatly between affiliate programs and the products that they offer.Many of the affiliate marketing programs out there today are being managed by affiliate networks. These affiliate networks are composed of various merchants and affiliates. Each having their own function when it comes to affiliate marketing. An affiliate network acts as a third-party between the merchant and the associated affiliates of the merchant. Essentially the network provides the technology to deliver the merchants campaigns and offers to the various affiliates and keep track of sales and statistics for both parties. Also, an affiliate network will collect the commission fees from the merchant and then pay the affiliates who have earned said commissions.The benefits of being an affiliate marketer are many. The affiliate is a website owner that markets and promotes one or more merchants and their products via the affiliate program. Affiliate marketing can quite possibly provide a full-time income for the affiliate. And although much of the marketing surrounding affiliate marketing would indicate that this is not only possible but rather easy; simply isn’t true. Just like any business it takes hard work and persistence to be truly successful.Affiliate marketing can be a great situation for someone wanting to start up their own business and work from home. The level of success defined is a personal thing and certainly affiliate marketing offers all levels of success.From a pure business standpoint, affiliate marketing offers low startup costs and very little overhead. That’s the easy part. Once you have your website up and you have found some good affiliate programs to offer your visitors, the true challenge is getting those visitors to your website.And thus begins an entirely new topic in the arena of affiliate marketing. Because without visitors there are no commissions. If you would like to learn more on affiliate marketing and how to become a successful affiliate marketer, please visit my website.