Understanding Affiliate Marketing
April 25, 2008
Understanding Affiliate Marketing
The basic business model for affiliate marketing entails relationships. In essence there is revenue sharing between a merchant and a third party that places links, banners, products, services and perhaps reviews on their personal website of the merchant. There is a link on herein referenced site that clicks away to the merchant site. In the event of a click a way or purchase embedded within the link is a code that identifies the affiliate. Depending upon agreement a commission is earned from either click a way link and/or sale.
Sales people and publishers are known as affiliates whereas the advertisers and merchants are referred to as affiliate merchants.
Different Types of Affiliate Programs
1-PPS or Pay Per Sale Affiliate Program is presently the most popular affiliate program. In this business model the affiliate refers visitors to a merchant site that sells products or services. The Affiliate only gets a commission if a sale is effected.
2-PPL or Pay Per Lead is a business model that pays the Affiliate for qualified and legitimate leads from visitors that sign up for a newsletter or other promotion. Note the terms and conditions carefully because many visitors may be directed from your site yet not be considered qualified. It may be wise to have different Merchant Affiliate Products.
3-PPA or Pay Per Action is a business model wherein the Affiliate is paid each time a directed visitor from affiliate site downloads free software, free gifts, and/or use some product or service as offered by Merchant Affiliate.
4-PPC or Pay Per Click Affiliate Program is an advertising business model used where Advertisers only pay when a user clicks on advertiser’s site or network, from Affiliate site.
