Affiliate marketing is divided into several different types. Two simple kinds are Pay/click and Pay/Performance.
Pay/Click. It’s also known as PPC. It is the simplest and most common type of affiliate marketing. For tiny sites, this is the best idea. The affiliate marketer puts the banners and text promotions of sellers on its site with this method. The affiliate receives credit if any customer clicks on these banners and visits the merchant site. The visitor does not need to buy anything. The average revenues for one click, however, are ridiculously small, typically less than $1.
Pay/Performance, also known as PPP, is extremely popular among large affiliates and all types of sellers. The affiliate is only credited if a visitor performs the required act. This action could be a purchase or membership on a merchant’s site. This approach is good for sellers since they pay only when paid. It is attractive for affiliates because they get a good portion of the sales of merchant goods. The ordinary share is approximately 15-20% of the sale.
Affiliate marketing can be divided into three groupings. These services are single, two-tier and multi-tiered. Another kind is when an affiliate marketer is paid for any sale made by a referred person. This is residual income. Let us take a closer peek at these types.
1-Tier, 2-Tier & Multi-Tier Affiliate Marketing. In a single-tier affiliate system, affiliates get the commission only for traffic or sales on the trader’s site. This group includes Pay/Performance and Pay/Click. In two-tier marketing, the affiliate receives payment on all activities performed by the visitors he refers. Moreover, when some other affiliate referred by him gets the commission, he will benefit. Thus, the affiliate earns both directly and indirectly.
Multi-level marketing is identical to two-level marketing. However, in this kind, affiliates receive sales commission from their affiliates at multiple levels. This can be infinite.
Residual Income. In this form of marketing, affiliates receive payment for any transaction on the merchant site from their referred individual. The only constraint is that the person should come from the affiliate on the first visit. The affiliate is paid for each transaction made by the visitor the next time the same individual visits the merchant’s site, even without coming directly from the affiliate.
So, how does the merchant know the affiliate ID? The answer is very straightforward. A cookie is created on the visitor’s system when the individual first visits the affiliate site. The affiliate ID of the referrer is stored in this cookie. Usually, this cookie expires after three months. It could be longer in some circumstances. Whenever a visitor visits the merchant site, a search is done for this cookie on the visitor’s system. If the cookie is found, the affiliate ID is obtained, and the affiliate is credited for every visitor buy.
My favorite method of earning income online is to create a large list of people in a niche and send them coaching, motivation and promotions.
If you want more ideas and techniques to make money online, sign up to my list and I will send you my online business startup newsletter here >> http://www.theprofitplugin.com/free-newsletter/