Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people’s outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant’s site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action—that is whenever the visitor he has referred actually buys something from the merchant’s site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

Pay Per Sale (PPS)

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. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant’s site.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. 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. All the previously mentioned affiliate marketing types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.

In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant’s site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every 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 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 you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

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Are you a webmaster who needs funds to keep your website running?  Or is your website the only way for you to earn income? Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you. With affiliate marketing, you may get a lot of cash pouring into your bank account easily. If your website is rich in great content and you want to earn more profit, why not get into the Google Adsense program as well?

Why Affiliate Marketing?

Well, simply because affiliate marketing is the easiest and probably the best way to earn profits online, unless you are a businessman and would rather sell your own products online than advertise other products on your site. But even online retailers can benefit from affiliate marketing programs, because affiliate marketing actually works for merchants as well as it works for the affiliates.

Affiliate marketing, simply put, is a relationship or agreement made between two websites, with one site being the merchant’s website and the other being the affiliate’s site. In this relationship, the affiliate agrees to let the merchant advertise his products on the affiliate’s site. The merchant, on the other hand, would agree to pay the affiliate in whatever method they have agreed to.This would generally mean easy income for the affiliate, as he would do nothing but place the retailer’s advert on his site. This would likewise be very beneficial for the merchant, as getting affiliates to advertise their products would be a good deal more affordable than hiring an advertising firm to promote their products.

There are a variety of methods on how the merchant would compensate the affiliate for their services, and for the webmaster, these methods simply translates to the method by which they would earn easy cash. Among the more common methods of compensation are the pay-per-click method, the pay-per-lead method, and the pay-per-sale method. The pay-per-click method is the method most preferred by affiliates, for their site’s visitor would only have to visit the advertiser’s site for them to gain money. The other two methods, on the other hand, are better preferred by merchants, as they would only have to compensate you if your visitor becomes one of their registrants or if the visitor actually buys their products.

Getting much profit on affiliate marketing programs, however, does not depend so much on the compensation method is it does on the traffic generated by your site. A website that can attract more visitors would generally have the greater chance of profiting in affiliate marketing programs.

What about Google Adsense?

Google Adsense is actually some sort of an affiliate marketing program.  In Google Adsense, Google act as the intermediary between the affiliates and the merchants. The merchant, or the advertiser, would simply sign up with Google and provide the latter with text ads pertaining to their products. These adverts, which are actually a link to the advertiser’s website, would then appear on Google searches as well as on the websites owned by the affiliates, or by those webmasters who have signed up with the Google Adsense program.

Whilst one can find a lot of similarities between Google Adsense and other affiliate marketing programs, you can also see a lot of differences.  In Google Adsense, all the webmaster has to do is place a code on his website and Google takes care of the rest. The adverts that Google would place on your site would generally be relevant to the content of your site. This would be advantageous both for you and for the advertiser, as the visitors of your site would more or less be actually interested with the products being advertised.

The Google Adsense program compensates the affiliate on a pay-per-click basis. The advertisers would pay Google a certain amount each time their advert on your site is clicked and Google would then forward this amount to you through checks, although only after Google have deducted their share of the amount. Google Adsense checks are usually delivered monthly. Also, the Google Adsense program provides webmasters with a tracking tool that allows you to monitor the earnings you actually get from a certain advert.

So, where do all of these lead us to?

Where else but to profits, profits and even more profits! Affiliate marketing programs and the Google Adsense program simply work, whether you are the merchant or the affiliate. For the merchant’s side, a lot of money can be saved if advertising effort is concentrated on affiliate marketing rather than on dealing with advertising firms. For the webmaster, you can easily gain a lot of profits just by doing what you do best, and that is by creating websites and if you combine all your profits from both the Google Adsense program and other affiliate marketing programs, it would surely convert to a large amount of cash.

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