Affiliate Marketing Programs– Which Category is the Best for You?
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By :
A.J James
Submitted
2012-02-06 09:34:00 |
Affiliate Marketing Programs– Which Category is the Best for You?
As you research the possibility of becoming an affiliate marketer you will find that affiliate marketing plans fall under two basic categories: pay/click and pay/performance.
Which category you choose will depend on your level of experience and how much work you want to put in to make profits.
This article will explore these categories and other criteria to consider when making a decision on which category to base your business model in affiliate marketing.
Pay/Click
The pay/click or pay per click program is the easier category to get started and therefore, the most popular.
This category is suitable for small websites. Banners and text ads are placed on these small websites.
The affiliate is paid every time a visitor clicks on one of the banners or text ads. It is not necessary for the visitor to make a purchase when he clicks on an ad.
A pre-determined amount (usually less than $1) is paid to the affiliate for every click.
Pay/Performance
With the pay/performance or pay per performance program business model the visitor must perform in a certain way in order for the affiliate to receive commissions.
For instance, the visitor must submit his email address in order to receive a free report and when he does, the affiliate receives a commission because the visitor performed the required action.
The affiliate may also receive a percentage of any future purchases their visitors may make, usually around 15 to 20 percent of the sale.
Residual Affiliate Marketing
There is an affiliate marketing category that involves an affiliate receiving commissions from referrals to the affiliate program, also know as residual affiliate marketing.
There are three levels from which to receive residual income: single, two-tier and multi-tier.
· On the single tier commission is paid to the affiliate for pay/click or pay/performance discussed earlier.
· The two-tier commission plan includes any commissions you earn from your own marketing efforts and additional commissions from affiliate marketers you have referred who receive commissions.
· The multi-tiered commission plan is the same as the two-tier commission plan except you receive commissions from your referrals several levels deep.
For example, not only do you receive a commission from someone you refer but also from someone he refers and someone he refers down to several levels of referrals.
Some affiliate marketing programs offer a way for affiliates to receive commissions on future purchases made by their customers.
When a customer clicks on an affiliate’s link to a product or service, a cookie is placed on the customer’s computer. If the customer returns to the site to make another purchase his computer is scanned for an affiliate ID number and the affiliate receives a commission from the new purchase.
Since all records of referrals from an affiliate link are recorded, all commissions owed are paid that are associated with that particular affiliate ID number. Cookies tracking of affiliate ID numbers usually last from 3 to 6 months.
In Conclusion
Now you have the information you need in order to choose the category of affiliate marketing you want to pursue. Pay/click and pay/performance are lucrative options; however, residual affiliate marketing can bring in commissions without anymore effort on your part except referring others to the affiliate marketing program opportunity. Residual income can happen even after you have moved on to another product or service.
Affiliate Marketing Programs– Which Category is the Best for You? By AJ James
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