Welcome to the first issue of Home Biz community Weekly!
Each week you will receive an issue with helpful information,
articles and quick tips you can use to reach your goals.
In this issue let's talk a little about....
The different types of affiliate marketing.
Affiliate marketing is gaining popularity day by day because of
the increasing consciousness amongst the masses about it.
Merchants as well as the affiliates have realized that affiliate
marketing proves beneficial for both of them. Affiliate
marketing gives the merchant the opportunity to advertise their
products at a low cost while the affiliates find affiliate
marketing as an easy way to earn money online and that too by
doing something that they enjoy-developing websites.
The perception of people about affiliate marketing has undergone
a sea change with the rising popularity of affiliate marketing.
Today, no one considers affiliate marketing as an alternative
method of advertisement of products by a merchant or as a source
of additional income for an affiliate. As of now, affiliate
marketing has become the main source of profits and revenues for
the merchants as well as for the affiliates.
Now, there can be a number of questions that could be asked
about affiliate marketing. For example, what type of affiliate
program should one opt for or does all affiliate marketing
programs accrue the same benefit or are all the affiliate
marketing programs the same deep down or are there affiliate
marketing programs that prove to be more beneficial than the
It is true that there are different types of affiliate
marketing but these types surely depend on the way one
classifies them. However, fundamentally affiliate marketing
programs can be classified not two heads-pay per click (PPC)
and pay per performance (PPP).
PAY PER CLICK (PPC) AND PAY PER PERFORMANCE (PPP)
PPC is the most popular as well as the easiest way of earning
money for affiliates having smaller websites. An affiliate gets
paid when a visitor is referred to his site i.e. when a user
clicks through the merchant’s banner or text ads. This payment
to the affiliate does not depend on whether the visitor makes
any actual purchase on the merchant’s site. Contrary to that,
under PPP affiliate marketing the affiliate gets paid only if
the referred visitor actually makes any purchase or if the
referred visitor turns into a lead. Due this difference, the
returns on PPC for an affiliate would be comparatively less
than PPP. PPP affiliate marketing is considered a better bet
for both the merchant as well as for the affiliates.
Similarly Pay Per Performance (PPP) affiliate marketing has yet
been classified into two categories: - pay per sales (PPS) and
pay per lead (PPL). As the name suggests under the PPS system,
the affiliate only gets paid if actual sales is made while under
PPL affiliate system, the affiliate gets paid if the visitor
fills up an application form or any such similar form related to
business of the company. This kind of system is used by
companies which depend on leads for their growth like finance
and insurance companies.
SINGLE TIER, TWO TIERS AND MULTI TIER AFFILIATE MARKETING
These are different types of affiliate marketing programs
depending on the depth of the affiliate network. If the
affiliates only get paid on the basis of direct sales or traffic
that he has referred to the merchant’s site (for example-PPS,
PPL and PPC), this kind of program comes under single tier
affiliate marketing. Similarly, if he gets paid for the direct
traffic that he has referred and also for every traffic or sales
that has been made by affiliates recommended by him, he comes
under the two tier affiliate marketing. In multi-tier affiliate
program, the affiliate gets paid like two tiers but besides that
he also gets paid for other affiliates in different tiers in the
RESIDUAL INCOME AFFILIATE MARKETING
The affiliate gets paid not once but every time the referred
customer makes a purchase on the merchant’s site. The payment
may be made as a fixed amount or as a percentage of the sale
Thus, we find that there are a number of affiliate marketing
programs and the choice that you make must depend on your own
convenience and requirement.