Ways to Earn Money Through Affiliate Marketing

There are a number of ways you can earn money as an affiliate marketer. You have to review each merchant's affiliate program and decide which is best for you. Some affiliates may offer more than one type of way for you to earn money.

Pay Per Click (PPC)

The most popular type of affiliate program is pay per click (ppc). With this program, you get paid by the merchant whenever you refer a visitor to the merchant site by clicking on a banner or text ad. You get paid even if the visitor does not make a purchase. The amount you earn per click is small.

Pay Per Performance (PPP)

This is one the most lucrative ways of earning money. With this program, the merchant only pays when the visitor makes a purchase or becomes a lead. This saves the merchant money because they do not have to go looking for leads. You, as the affiliate marketer, send the lead to the merchant. Commission in this program can range from 15% to 25% of the actual cost of the product.

Pay Per Sale (PPS)

Pay Per Sale (PPS) is an extension of PPP. The merchant pays the affiliate when a visitor actually makes a purchase. Payment is made on a commission basis or the merchant may pay a fixed fee for the sale.

Pay Per Lead (PPL)

This type of earning is mostly used by companies who are trying to grow their business. You are paid whenever the visitor fills out an application or information form on the merchant's website. This is usually a fixed fee.

There are other types of affiliate programs.

Tier Programs

Other types of affiliate marketing are based on tiers. In a single tier program, you are paid on the direct sale or traffic you referred to the merchant. The above programs are single tier.

In the two tier marketing program, you are paid for the direct sale or referral you made and you are also paid for sales made by affiliates you recommended to the program. The mult-tier program works the same way. You get a commission for the number of affiliates you recommend on different tiers of the network.

Residual Income

A residual income program pays you for each a visitor you referred to the merchant makes a purchase. Most merchants set cookies for a specified period of time such as 30, 60, 90 days. There are some that will pay for the lifetime of a visitor. Your commission will be a percentage or fixed fee.

Affiliate marketing is a partnership between the merchant and the affiliate. The affiliate drives business to the merchant and the merchant can concentrate on providing quality products and services. Select the types of programs that fit your business model.