Affiliate programs offer businesses the opportunity to earn online. Affiliate Marketing is simply a form of performance- based advertising in which a company rewards one or more merchants for each visitor or client brought about by an affiliate’s advertisement efforts. The merchant then pays the affiliate a commission, typically a fixed percentage of the amount of sale or transaction generated by the affiliate. It is the affiliate who is paid for generating sales and not the merchant, although there are instances where a merchant may provide partial compensation to an affiliate if a sale is made as a result of the affiliate’s advertising efforts. There are many different forms of affiliate programs available, including Pay Per Click (PPC), Pay Per Action (PPA) and Pay Per Lead (PLO).
Pay Per Click (PPC) affiliate programs pay commission only when visitors click on the affiliate links. Affiliates who receive only PPC traffic will not earn commissions unless the affiliate has actually received a conversion. In effect, Pay Per Click affiliates are essentially money makers for the websites they visit. Due to this feature, Pay Per Click affiliate programs often have a high cost to join and can be time consuming and cumbersome to manage. It takes time and effort to effectively manage and track all of the actions of a Pay Per Click campaign.
Pay Per Action (PPA) programs pay commissions when visitors click on the affiliate links. Because affiliates must pay to join, this type of affiliate program is much less costly and time intensive than PPC programs. The cost of joining this program, however, is tied to the amount of traffic being directed to the affiliate sites. Because PPA programs generate so much money, it is usually best to focus on a select number of popular products, and to make your investment grow over time with good results. It can be much easier, however, to make money with PPA programs than it is to generate traffic to a PPC site.
A Pay Per Lead affiliate program is much like PPA in that the merchant pays the affiliate if the visitor inquires more information about the merchant or product. Pay Per Call programs are much like PPC, except the affiliate is paid only if someone makes a purchase after clicking on the affiliate link. This type of affiliate program, however, does not compensate the affiliate until the customer buys a product or service. This is one of the main differences between PPC and PCA. The affiliate may get paid for each lead generated but, because it does not compensate the affiliate until action is taken, the amount of action a Pay Per Click program might generate is significantly smaller than a PPC program would.
Another way to create great content for your affiliate program is by writing articles, reviews, or other informative pieces. To make article marketing even more effective, you can take an affiliate link and put it in your resource box at the end of the article. You can use your affiliate link to create great content for your affiliate program. The success of article marketing relies heavily on the number of incoming links, which is determined by the keywords used in your article and website.
If you don’t want to do all the work of creating great content, you can still make money through affiliate marketing through Pay Per Click. The way Pay Per Click works is that the visitor to your affiliate program will see a small box or window on your website. The visitor clicks on the box or window, fills in the amount of money the merchant wants to pay, clicks a box, and the money is transferred from your account to the merchant’s account. The customer is charged by the merchant for the amount of money the customer has chosen to pay and no amount of work is done by you. Every time a customer clicks on your affiliate link, you earn a small fee. This can be a very effective method of affiliate marketing but you must have a high traffic volume to make money with this method.
Another way to make money through affiliate programs is through a CPA (Cost Per Action) agreement. This means that instead of paying the affiliate only for a lead, you agree to pay the merchant every time the customer actually makes a purchase through your link. This is an excellent source of revenue for affiliate marketers who have high traffic and very low cost per action rates. In order to qualify for a CPA agreement, you need a merchant web site with a high volume of visitors each month.
To find a list of affiliate network sites, search Google for “affiliate networks”. If you’re just getting started with affiliate marketing, start with a free affiliate program and learn the ropes through that site. You can always sign up for more affiliate programs as you become successful.