Affiliate marketing can be a very lucrative career, but not sure which route to take? Read on for simple explanations to help you decide.
As you may already know, affiliate marketing is an extremely simple yet highly effective concept and is known as the fastest and easiest way to earn money online. Basically, the idea is to use the Internet to sell other companies’ products or services on a commission basis. The subsidiary 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: pay per performance and pay per click.
Pay Per Performance
In this umbrella, pay per performance (PPP) means that the partner receives a reward when a visitor from their own partner ID completes the required action. This can be either an actual sale, where commissions are usually 10-50% and the most popular products usually give less commission than the less popular ones, or a generated lead, where the affiliate is paid for each person that signs up. on the merchant’s website. This can be quite attractive to the affiliate as they can earn 15-20% of all subsequent sales.
Pay Per Click
Also known as PPC, pay per click affiliate marketing is considered very popular and also the easiest way to make money and is ideal for those with small websites. The marketer simply places banners and text ads already created by the merchant on his own website. The merchant pays a commission to the affiliate for each click on these banners or ads. There is no need to make the next sale, so the profits are usually very small (usually less than $1) compared to the other options mentioned in this article.
Affiliate marketing can also be classified based on residual income marketing and tiering; single, double and multi-level.
Residual income marketing
After the buyer makes their first purchase made through the affiliate marketer’s link ID, the affiliate marketer is not only paid a commission for the sale, but also receives commissions based on the buyer’s future sales. The methods to achieve this are really easy to understand; A cookie is created from a unique partner ID and placed on the buyer’s computer during the first purchase. Normally, this cookie expires after three months, but it can last longer. When the buyer returns to the merchant to make another purchase, their computer is immediately checked to see if the affiliate cookie is registered, and if found, the affiliate receives a refund for the sale. It is important to note that cookies are in no way harmful to your computer and do not contain personal information that can be seen or used by a third party.
Single level
The affiliate receives a commission for traffic or sales on the merchant’s website, depending on whether it is a PPC or PPP program.
Two levels
The affiliate receives a commission for each action taken by the consumer, and he receives commissions based on the performance of other affiliates he personally recruits.
Multi-level
The affiliate is paid the same as he is paid in the two-level program, but the levels can go much deeper when commissions are made on the sales of his recruited affiliates and also on the sales of their recruited affiliates. The level depth can be unlimited.
