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What is Affiliate Marketing?Affiliate marketing has quickly become one of the most popular and the most effective ways to advertise on the Internet. The premise of affiliate marketing is very simple. Why Choose Affiliate Marketing?In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. Promoting products through affiliate marketing has many benefits over trying to launch your own product:
There can be huge differences between affilaite programs in terms of support, commissons paid, and market niche's covered. For our tips on the best prgrams to get started with, see our top program reviews What is the best way to select an affiliate program?
Single-Tier, Two-Tier, and Multi-Tier Affiliate MarketingThese types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. These structures offer more incentive and further motivate the affiliates to work harder and very quickly build a fleet of affliates under the merchant. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. PPS and PPL affiliate marketing types) fall under the single-tier classification. In two-tier affiliate marketing programs, the affiliate is not only paid for the direct lead or sales that he refers to the merchant's site, but also on every lead or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, that the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network. Residual Income Affiliate MarketingIn residual income affiliate marketing, the affiliate gets paid not only once for the customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase the same product or another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis. The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for a merchant? Rather, it is to choose which type of affiliate marketing program will suit the merchant's needs and characteristics best. |
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