The following article is one of a series of articles which focus on Affiliate, Article and Internet Marketing. How Many Types Of Affiliate Marketing Programs Do You Know?
Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.
Are all affiliate marketing programs the same? The most basic affiliate marketing programs, however, falls under 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 probably the easiest way for them to earn money. PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).
In a pay-per-sale 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. Apart from these three specific 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 customer he has referred purchases something from the merchant’s site.
* Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing
These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. 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. * 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 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
In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant’s site. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.
The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you?

By. Andrew

This entry was posted on Tuesday, July 13th, 2010 at 9:18 am and is filed under Affiliate. You can follow any responses to this entry through the RSS 2.0 feed.