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Friday, July 18, 2008

Different Variations of Affiliate Marketing

There are a few different types of Affiliate Marketing Models that we are going to have a look at.
You can be rewarded for referring potential buyers in various ways:

Pay Per Click: You are paid for each user that clicks through from your site to the advertisers site. Usually ranging anywhere from $0.01 through to $2+ depending on the advertiser & or product.

Pay Per Lead: You are paid whenever you generate a lead or a sign up, this is more commonly known as a CPA or Cost Per Acquisition model. This can be something as simple as getting a user to sign up to a mailing list or enter a competition. This can range from $0.50 right up to $100+ again depending on the product or service.

Pay Per Sale: You are paid whenever the user your refer generates a sales or purchases the product. This type usually generates the largest commissions, however it’s the hardest type to convert. There’s no range on this type of marketing, it just depends on what commission the advertiser pays & how expensive the product is.

Now lets look at the three types of Affiliate Marketing above. You can notice a distinct pattern.
Pay Per Click; as you can imagine is the easiest type of sale to generate, however it has the least returns. Pay Per Lead is slightly harder to generate with more generous returns & then Pay Per Sale is the toughest but with the most rewarding return.

Now that we’ve grasped the basic types of Affiliate Marketing lets have a look at how you can put these models into practice on your own site, we’ll also have a look at how you can market products without even having your own website to begin with.

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