Affiliate marketing can be a very lucrative career, but not sure which route to take? Read on for some simple explanations to help you decide.
As you may already know, affiliate marketing is an extremely simple yet very powerful concept and is known as the fastest and easiest way to earn on the net. Basically, the concept is to use the Internet to sell the products or services of other companies in exchange for a commission. The affiliate receives a commission from the merchant for each sale made.
There are many classified types of affiliate marketing, but they all fall into two basic categories of pay-per-performance and pay-per-click.
pay for performance
Under this umbrella, pay for performance (PPP) will mean that the affiliate receives a commission when a visitor from their own affiliate id takes the required action. This can be an actual sale where commission rates typically range from 10-50% and more popular products tend to give less commission than less popular ones, or a lead generated where the affiliate is paid for each registered person. on the merchant’s website. This can be very attractive to an affiliate as they can earn 15-20% of subsequent sales made.
pay per click
Also known as PPC, pay per click affiliate marketing is considered to be extremely popular and also the easiest method to make money and is ideal for those who have small websites. The marketer simply places banners and text ads that have already been created by the merchant on their own website. The merchant pays a commission to the affiliate for each click that is made on these banners or ads. No subsequent sale is necessary, therefore the payments tend to be very small (usually less than $1) compared to the other options mentioned in this article.
Affiliate marketing can also be categorized in terms of residual income marketing and tiers; one, two levels and several levels.
Residual Income Marketing
Once a buyer has made their first purchase, made through an affiliate seller’s link ID, not only is the affiliate seller paid a commission on the sale, but they will also earn commissions based on the buyer’s future sales. . The methods to achieve this are really easy to understand; A cookie is generated from the affiliate’s unique ID and placed on the buyer’s computer at the point of first purchase. Normally, this cookie will expire after three months, but it can stay longer. When a shopper returns to the merchant to make another purchase, the shopper’s computer is instantly checked to see if an affiliate cookie was set, and if found, the affiliate will be credited for the sale. It is important to note that cookies are not harmful to the computer in any way and do not contain any personal information that can be seen or used by a third party.
single level
The affiliate gets the commission for the traffic or sale on the merchant’s website depending on whether it is a PPC or PPP program.
Two levels
The affiliate will earn the commission for each action the consumer takes and will earn commissions based on the performance of other affiliates personally recruited by him.
multilevel
The affiliate is paid in the same way as they would in a two-tier program, but the levels can go much deeper with commissions being made on sales made by their recruited affiliates and their recruited affiliates as well. The depth of the level can be unlimited.