Types of Affiliate Marketing

By Ally Chan

Affiliate Marketing means 'pay per action'.

You will get pay when the traffic (visitors) you bring in takes the 'action' of buying or subscribing something on a particular website. In a simple term, the action we mean here are,

Action#1 : 'Pay Per Lead' - Generate of new lead (potential customer or subscriber)

Action#2 : 'Pay Per Sale' - Generate of sales for a product

Let's discover both affiliate marketing model one by one. You may choose the one which suit you most or just grab these two streams of internet income into your pocket.

Let's take the simplest way to understand both Pay Per Lead affiliate program and Pay Per Sale affiliate program......

Pay per lead (PPL) is a method of marketing that enables you to generate your commission by referring visitor for a certain action like a software download, sign-up for free membership, sign-up of a newsletter or subscription, filling out an application from, etc. If the customer follows an affiliate link to the advertiser's website and makes the required action, then the affiliate gets an agreed commission.

In pay per lead affiliate program, the prospect is not making any purchase.

Example : You get your commission by .....

** Refer prospect to sign-up for free member through your affiliate link.

** Refer prospect to sign-up for newsletter or subscription through your affiliate link.

** Refer prospect to trial on new products or services through your affiliate link in exchange for filling out contact form.

** Refer prospect to fill out a survey form through your affiliate link in exchange of freebies.

Example 1:
Traffic (Visitors) >> -- Your Affiliate Link -- >> Prospect Sign up Free Member >>-- You get your PPL commission $$$

Example 2:
Traffic (Visitors) >> -- Your Affiliate Link -- >> Landing Page (Fill out personal Information) >>-- Prospect received their freebies >>-- You get your PPL commission $$$

Yes, the prospect is not making any purchase. Instead, the prospect is getting something value in return. It may be some freebies, valuable information, new exploration, new friends or joining a new community network. In any case of above, you get paid for generating that lead.

Compare with pay per sale affiliate program, the commission from pay per lead affiliate program is smaller. But, with good promotion methods, pay per lead affiliate programs can result in a very high conversions rate. Because surfer like FREEBIES! In return, this will translate into a BIG INPUT to your bank account.

Pay per sale (PPS) is a method of affiliate marketing model where the merchant pays an affiliate solely for sales of products. You, the affiliate, are tasked with sending traffic to the merchant in order to help him/her acquire new customer.

When a customer follows the affiliate link to the merchant's website and buys a product, you are credited with the sale and you receive a commission. This is where your profits come from. Your affiliate link is very important, must sure there is no error in your link. If not, you'll end up with leaving a lot of sales on the table.

Pay per sale has high commission if the purchase is complete. However, pay per sale programs have a low conversion rate if compare with pay per lead programs. In pay per sale affiliate programs the customer is required to pay his money and this requires a lot of convincing skills.

When promoting a Pay Per Sale product, never direct your traffic (visitor) to your affiliate link. If you do so, you are actually putting your money in the merchant's (advertiser's) bank account.

There is a big different in both pay per lead and pay per sale affiliate models, especially, when it comes to the business processes, method of promotion and the revenue.

Pay Per Lead

** Low commission

** High Conversion

** Simple promotion methods

** Direct as many as visitors to your affiliate link

Per Sale

** High Commission

** Low Conversion

** Tactic promotion strategy

** Visitors are direct to your own landing page for lead capture. Then only redirect the visitors to your affiliate link.

Don't decide any system or type of approach at this point, it will be best that you try both and see for yourself which works best for you.

Ally Chan is Internet Marker which focus in Newbie Development. Visit her blog [Make Money Online with Ally Chan] now to discover more online money-making secret. Ally's blog http://www.allychan.com Discover the secret. Share the Big Dreams.