Types of Affiliate Marketing Programmes

Affiliate Marketing is increasingly being used by websites for better revenue generation. The Internet is flooded with millions of online affiliate networks that hold various exciting offers for both merchants and affiliates. Each such programme has its own set of advantages and disadvantages. The system of payment is based on a variety of principles, as agreed upon by a merchant and his affiliate(s).

Affiliate Marketing Networks have broadly the following types of payment processes:

1) Pay Per Sale – These are the most common programmes in the Online Affiliate Marketing scenario today. In this programme, an affiliate is liable to a predetermined amount of commission on the sale of products or services made by the merchant. Often, these programmes also have the option of offering incentives and gifts to affiliates who perform exceedingly well in diverting traffic to merchant's websites.

2) Pay Per Click – In such kinds of programmes, the merchant pays a predetermined amount to affiliates for every click that is generated through the latter's promotional campaign on his website. Commission is therefore paid on the basis of number of visitors who are routed through the affiliates website. Usually, these programmes do not generate too much money for affiliates, as the amount of commission is relatively small.

3) Pay Per Lead – In pay per lead Affiliate Programmes, affiliates get commissions only when a visitor turns into a prospective buyer. Even though it might not eventually turn into a sale, a lead nonetheless is beneficial for a merchant.

4) Flat fee – Most of these programmes include both pay per sale and pay per lead aspects of Affiliate Marketing. A predetermined amount is paid on per customer or per order basis. However, this kind of programme is not very popular and does not find many takers.

Whether it is Search Engine Optimization service or affiliate marketing, the main aim of these activities is to make good use of the Internet in enhancing the volume of traffic inflow to your website. Choosing the right kind of affiliate programme will help affiliates in earning more money without too many concerns.

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The Two Sides of Affiliate Networks

Almost everybody involved in e-business and online marketing is aware of the concept of affiliate marketing. It has proved to be one of the most powerful tools of Internet marketing and has managed to earn a fairly good reputation as a marketing instrument that has been effective in diverting quality traffic and improving page ranks. It does not require much investment, because it basically involves marketing products produced by others. The immense popularity and growth of affiliate marketing has led to the inception of affiliate networks.

These networks act as a link between the merchants and the affiliates. Along with providing a choice to the merchants as well as the affiliates, such networks also offer a number of affiliate programmes for affiliates to choose from. Despite the popularity and success of these networks, some merchants still are wary about the credibility of the networks and the deals and other services provided by them. They prefer dealing with the advertiser directly, rather than through a third party.

Like all other things, even these networks have their own advantages and disadvantages from the point of view of the merchant. Being a part of these networks provide a lot of assistance and convenience to the merchant. He has easy access to a number of prospective affiliates who are willing to take up his programme. Merchants are saved from the trouble of going out and looking for affiliates. Monitoring the progress of the affiliate programme also becomes easy and the entire campaign becomes simpler and manageable.

The other side of such networks can be that the overall cost of the merchant gets escalated and he is not able to maximise profits, since he has to pay the affiliate network as well as the affiliate. Apart from this, not all networks behave responsibly and track sales and leads generated from the affiliate programme.

The final choice to choose one of these networks as a medium to promote one's affiliate programme ultimately depends upon the merchant. He has to decide what works best for him and his website. Even if he chooses to use the services of these networks, he should be extremely careful and should gain thorough knowledge about the network's track record and credibility.

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The Two Sides of Affiliate Networks