Thursday, February 22, 2007

Affiliate Marketing Tips - The Different Types Of Affiliate Programs

by Simon Akers


If you have decided to promote other people's products as an affiliate you may not be aware of the different types of affiliate programs available to you. So if you are serious about affiliate marketing you will want to know which option best suits you.

The most popular type of affiliate program involves the product owner offering a percentage of each sale as a commission to affiliates. Most affiliate programs will offer 50% commissions but some will offer as much as 90% commissions. This is a single tier affiliate program where affiliates are only paid for the sales that they refer.

Some affiliate programs will also give you the opportunity to recruit secondary tier affiliates and earn a percentage commission from each sale that they generate (normally around 5% to 10% per sale). Occasionally you may also find an affiliate program that offers multiple tiers allowing you to profit from sub affiliates on many levels.

Single tier affiliate programs are what most people are familiar with as they are the most common but its not the only way to profit from affiliate marketing. Its now possible to earn commissions for each lead that you refer and even each click that you generate which can be far more lucrative than just getting paid for each sale.

These type of affiliate programs are classified under Pay Per Performance where you are paid for each sale, each lead, or each click that you generate. So whenever someone you refer takes action and completes a certain task you will get paid a commission by the merchant.

Pay Per Click

This type of affiliate program allows you to earn a commission for each click that you send to the merchant's website and you will still get paid even if the person doesn't actually buy anything. The problem with this is that the commissions are usually very small so it requires a large volume to make it worthwhile.

Pay Per Lead

This type of affiliate program allows you to earn a commission for each lead that you send to the merchant's website so you will get paid whenever one of your referrals fills out a form with their details and you will get paid a small commission ranging from $1 to $20 or more. Because this can be so lucrative its much harder to find these types of affiliate programs.

Pay Per Sale

This type of affiliate program allows you to earn a commission for each sale that you send to the merchant's website so if the person doesn't actually but anything you will not get paid. Because its harder to get people to order you will be rewarded with large commissions as high as 90% of each sale that you generate.

Residual

This type of affiliate program allows you to earn a residual commission for each sale that you send to the merchant's website so not only will you earn a commission from the initial sale but also on a recurring basis usually each month. This is fast becoming one of the most popular types of affiliate program because you get rewarded multiple times for the same amount of effort used to generate a single sale.

Choosing which type of affiliate program is right for you will depend on what your budget is and what type of website you have. If you have a large content website that generates a lot of traffic you may find it more profitable to find a Pay Per Lead affiliate program rather than the traditional Pay Per Sale.

But if you have a large budget to spend on advertising you should try to find a residual affiliate program in order to generate maximum profits. Its just a case experimenting and testing the different types of affiliates programs to see which best suits your website or budget.

This article was written by Simon Akers who is the editor of the Marketing Oasis newsletter, a free internet marketing ezine packed with tips to help you succeed and increase your profits: http://www.MarketingOasis.com

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