Affiliate Marketing can be classified into many types. All kinds fall under two basic categories. These are pay per click and pay per performance. It will take time to gain a decent amount of income, as you are starting out, for which the best way is to gain traffic and make it on the first page of a search engine. The amounts and results can vary and this is not a get rich quick plan, as it can take months or a year to get to a decent figure salary.
Pay Per Click
It is also called PPC. It is considered to be the easiest and most popular affiliate marketing method. This is the greatest thing for small websites. With this method the affiliate marketer places banners and text ads of merchants on their website. The affiliate is paid for every click made on these banners. When any visitor or potential customer clicks on these banners and visits the merchant website, the affiliate gets credited. It is not essential that the visitor makes a purchase, which can affect what you earn. However, the typical earning for a single click is very small, usually less than one dollar.
As mentioned in a previous post, promoting products with lots of graphic, banners, will be a downfall as this will make your website not professional. I recommend that the post should have a lot of information, a picture of the product and finally one banner, as this layout is mostly used by other affiliate marketers.
Pay Per Performance
Pay per performance affiliate marketing, also called PPC, is extremely famous among big affiliates and all types of merchants. In this method the affiliate gets credited only when any visitor from their affiliate id performs the required action. This required action may be a purchase or becoming a member of a merchant website. This method is very good for the merchants because they will only pay when they are paid. For affiliates, it is attractive because they are getting a good share in the sales of merchant products. The usual share is about 15-20% of sale.
This is also why I recommend Clickbank or CBProads for pay per performance as you get a higher share than 15-20%, the commission that marketers promote are 50-75% of sale and that will provide more earning online opportunities.
If we classify the affiliate marketing on the basis of depth, then it can be divided into 3 classes. These are single-, two-tier and multi-tier programs. Another type is the one in which an affiliate marketer is paid for every sale that is made by a person referred by him. This is called residual income affiliate marketing.
In an affiliate program of single-tier nature, the affiliates get the commission, only, for the visitor’s traffic or sales to the merchant’s website. Pay per performance and pay per click fall under this category. This method of course only works best if made a sale, but getting some money is better than getting nothing at all.
Two-tier marketing is when the affiliate gets the commission for every action done by the visitors or customers referred by him. Plus he will get the profit whenever some other affiliate, referred by him, gets the commission. So in this way the affiliate is earning directly as well as indirectly. If people have experience of getting referrals quickly, then this is the best tier to be in.
The multi-tier marketing is the same as two-tier marketing. But in this type, the affiliates get the commission for the sales made by their affiliated affiliates in multiple tiers. The depth of this type may be unlimited. Of course it all depends if you are successful or not and if your referral is great at persuading other people to join under him.
Residual Income Marketing
In this type of marketing, affiliates get the commission for every sale that his referred person makes on the merchant website. The only requirement is that on the first time visit, the person should come from the affiliate link of the affiliate. Next time if the same person visits the merchant website, even without using the affiliate link, the affiliate will be paid for every sale made by the visitor. The question that arises is how the merchant will know the affiliate id. The answer is very simple. On the first visit of the person from the affiliate website, a cookie is created on the computer of the visitor. This cookie stores the affiliate id of the affiliate. This cookie usually expires after 3 months. In some cases it may be longer. Whenever a visitor visits the merchant website, the visitor’s computer is checked for the existence of any previously created cookie. If the cookie is found, the affiliate id is retrieved from it and the affiliate gets credited for any purchase made by the visitor.
*Disclaimer: Banners and links, some not all, go to pages that I promote and will get a small commission or some benefit of a new referral, you do not have to join my links if you do not want to, as most information will be free.
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