Affiliate marketing is divided into several different categories. Two simple types come in as Pay per click and pay per performance let us look into the the categories in-depth.
Click per Pay.
Also known as PPC. It is the simplest and most common form of affiliate marketing. For beginners and small websites, this is the best way to start. Affiliate marketers puts the banners and text advertising of merchants on their website with this approach, then any click on these banners is paid for by the affiliate. The affiliate receives credit if any user clicks on these banners and visits the merchant website. The visitor doesn't need to buy them. The average earnings for one click, however, are very small, typically less than a dollar.
Pay per Performance.
The marketing of pay per performance affiliates, also known as PPCs, is extremely popular among large affiliates and all forms of dealers. The affiliate is only credited for this process only and when any visitor from their affiliate identification performs the required action. This activity could range from a purchase or membership on a merchant's website. This approach is really good for traders since they pay only when paid. It is attractive for affiliates because they get a good share in the sales of merchant goods. The ordinary share is approximately 15-20% of the sale.
The determination of profile of an affiliate marketer, is grouped into three. These are as follows; single, two-tier and multi-tiered. Not to forget that an affiliate marketer is also paid for any sale made by a referred individual. This is called the promotion of residual income affiliates. Let us take a closer look at these styles.
1-Tier, 2-Tier & Multi-Tier Affiliate Marketing In a single-tier affiliate network, affiliates get the commission only for traffic or sales to the trader's website. This category includes pay per performance and pays per click.
In two-tier marketing, the affiliate marketer receives the fee on all actions taken by the visitors(lets call them clients) referred. Moreover, when some other associate referred to 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 affiliates receive sales commission from their affiliates at multiple levels. This sort of depth can be infinite.
Marketing of residual income In this form of marketing, affiliates receive the fee for any transaction on the merchant website from their referred person. The only requirement is that the individual should come from the affiliate connection of the affiliate on the first visit. The affiliate is paid for each transaction made by the visitor the next time the same person visits the merchant's website, even without using an affiliate connection.
The question that you might have is, how the trader knows the affiliate identification?. The response is very straightforward. A cookie is created on the visitor's machine when the individual first visits the affiliate website. The affiliation ID of the affiliate is stored in this cookie. Currently, this cookie expires after three months. It could be longer in some situations. Whenever a visitor visits the merchant website, a cookie previously produced is reviewed on the visitor's machine. If the cookie is located, the affiliate id is obtained, and the affiliate is credited to every visitor purchase.
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