Affiliate marketing is one of the easiest methods of making money online. Virtually anyone can sign up for most affiliate marketing programs, and best of all, marketers do not need to go through the trouble of having their own products or services. Instead, they are paid for promoting whatever products or services they choose by generating leads and sales for various merchants. However, succeeding in this kind of marketing requires thorough understanding of how it works. The following are some of the most common types of affiliate marketing.
Pay Per Click (PPC)
PPC is one of the most popular forms of affiliate marketing and for a good reason – it is easy to get started in. In addition, it can be used on almost any type of website regardless of the type of site or topic of it. Essentially, the affiliate is paid by the merchant whenever they send a visitor to the merchant’s website. This happens when a visitor clicks on a banner or text link located on the affiliate’s website. The benefit to this type of affiliate marketing is that the affiliate gets paid regardless of whether or not the visitor actually buys a product or service from the merchant. On the downside, affiliates will only earn a small payout, usually $1.00 or less per click. Therefore, anyone trying to a lot of money from this type of marketing has to know how to generate heavy web traffic. Both pay-per-click affiliate programs and top ad networks for publishers covers this method of monetization more.
This is similar to PPC and if often offered by the same networks. It fact, PPI and PPC ads are sometimes served at the same time. With PPI, the customer does not have to click on the advertisement. The affiliate is generally paid for each impression or for a certain number of impressions. Not surprisingly, the revenue generated per impression is quite low. However, this can be a good form of monetization for sites that receive a lot of traffic.
Pay Per Performance (PPP)
PPP is different from PPC in that the affiliate only gets paid when the visitor whom they refer to the merchant’s website performs some type of action. PPP can be broken down into two distinct categories. If the affiliate is paid when the visitor purchases a product or service, this is called a pay per sale or PPS program. While the products being sold should be related to the topic of the site, affiliate marketing is very broad and finding related products should not be difficult. The following guide to affiliate programs covers a wide range of programs, so there is sure to something to match every interest, including high commission digital products.
Pay Per Impression
Some types of sites get a lot of traffic but not the kind of traffic that converts to clicks very well. While these types of ads often will only pay a penny per impression or a certain amount for every 1000 views, they are sometimes the best way to go if most visitors are not likely to click on the ads.
If the affiliate is paid when the visitor fills out a form, application or completes some other kind of desired action, this is called a pay per lead or PPL program. This is typically cost per action or CPA marketing. In either case, both PPS and PPL programs pay out more than PPC programs. In fact, it is not uncommon for affiliates to earn up to 70% of the total sales price in PPS programs. PPL programs typically pay in the range of a few dollars per lead, but may pay more depending on the merchant. Insurance companies and lawyers, for example, pay a premium price for leads because of how valuable they are.
With email marketing, the affiliate marketer uses squeeze pages, etc., often combined with some type of offer, to capture email addresses and build relationships with subscribers. In time, these relationships can be used to recommend and sell products. More than any type of affiliate marketing, this is going to take time and resources. However, the rewards are sweet for those who succeed.
People love video, and the demand for it online is only going to grow with increasingly fast connections. A nice thing about video marketing is that existing content can simply be converted to video form, reducing creation time. YouTube channels can be monetized with PPC and other promotions and can help with SEO as well as traffic with links to the website being promoted.
Viral marketing often involves video but can be any type of content. Basically, marketers do their best to create great content and try to start a “buzz” with it through different forms of social bookmarking. When successful, this can greatly increase the popularity of websites and drive visitors to offers.
Residual income affiliate marketing
Residual income affiliate marketing is different from the other programs in that the affiliate is not only paid for the first product or service that the visitor purchases from the merchant, but any subsequent purchases as well. For example, if the visitor signs up for a monthly subscription, the affiliate will continue to earn a commission each month, so long as the visitor’s subscription remains active. These types of affiliate programs can be extremely lucrative because the affiliate earns more from each visitor than they would if they only received a onetime commission. In other words, they are getting a much greater return on their marketing efforts. However, these programs generally pay a lower percentage for each sale. Furthermore, since only the best products keep customers paying subscriptions over time, the competition will be fierce.
Whatever the form of affiliate marketing used, the following guide on how to get started in affiliate marketing will be a great first step.