Affiliate Marketing

Affiliate Marketing

Affiliate marketing is one of the most impressive ways to advertise different kinds of businesses, products and services. Moreover it has proved to be a very effective source of passive income for those who are looking forward to making money through online businesses. Not only Affiliate Marketing involves minimum effort on the part of merchant but also marketer has to do less of work. Let us get to know the descriptive model of affiliate marketing which would be instrumental in you making good online money.

Affiliate Business Model

As the name suggests, the business model embraces two parties. The first party being merchant or the advertiser who searches a company to promote a product or service at an economical cost and the second party is that of affiliate or marketer. The marketer is the one who endorses services and products in place of merchants. For doing this he requires to get subscribed with the merchant company’s affiliate program where he is allotted a specific identity number. This unique identity number is also included in the distinctive URL. Merchants or companies hire multiple website owners to advertise their product and services. The unique identity number helps them keep an account of the site from where sales have been generated.

The benefit of Affiliate Marketing is that there is no hindrance on the type of product that can be advertised and therefore all businesses can take advantage from these products. Majorly it embraces sale of digital items apart from which tangible goods like books, apparel and home utility items are also sold via Affiliate Marketing.

Lead Generation & Affiliate Network

Lead Generation & Affiliate Network

Affiliate Revenue

Commissions form a big part of affiliate revenue and it never involves a flat rate. What happens is that the merchant company agrees to pay the Internet marketer a particular percentage as commission if the website audience does any of the actions mentioned in the affiliate program. This may include instances where an individual clicks on the advertisement, visits the company website, fills out the questionnaire or buys anything via banner advertisements placed on the affiliate site.

An affiliate has the flexibility to select form the variety of remuneration plans out of which the primary four affiliate schemes are:

  • Pay-per-click (PPC): This advertising model sets that each time a website audience clicks on the advertisement, the company will compensate the marketer.
  •  Pay-per-sale (PPS): It is a compensation scheme which says that a marketer will be paid for every sale made through his website. It is the most famous of all Affiliate Marketing Programs.
  • Pay-per-impression (PPI): This compensation scheme sets whenever a visitor visits the company website affiliate revenue is paid.
  • Pay-per-lead (PPL): Here the marketer is paid by company the agreed amount only if the customers successfully register at on the merchant website.

Affiliate Marketing: A win-win situation

Affiliate Marketing Model is such that not only the merchant but marketer also gains benefit from one another’s actions and the revenue for the same is shared between the parties.