They say the easiest method to earn money online is through affiliate marketing. But have you ever wondered how publishers or affiliates make money from this?
If you want to become an affiliate, make sure you know how affiliate marketing works. Here are the four most common types of payment methods used today by merchants, publishers, and affiliate managers:
1. Cost Per Action (CPA)
Also known as pay per action (PPA) and cost per conversion, is an online advertising pricing model where the advertiser pays for each specified action – for example, an impression, click, form submit (e.g., contact request, newsletter sign up, registration etc.), double opt-in or sale.
2. Pay per Click (PPC)
This is perhaps the most famous and the easiest way affiliates with small web sites earn money online. With PPC, the merchant pays its affiliate for every click that a visitor makes on his/her page’s or web site’s ad. Fees for PPC programs are usually small and don’t exceed a dollar for each click.
3. Pay per Lead (PPL)
Insurance, finance, and other firms often use this method to get more customer leads. The merchant pays its affiliate only when the referred visitor signs up or fills up a form from the merchant’s web site. Fees for PPL programs range from $2 to $20 or more.
4. Pay per Sale (PPS)
This method is probably the most lucrative way to earn money among other payment schemes. However, it is also highly competitive and time consuming. With PPS, the merchant pays its affiliate every time a visitor clicks on the affiliate link and buys something from the merchant’s web site. They pay their affiliates monthly and on a commission basis.
5. Pay per Impression (PPI)
This method is often called cost-per-mille (CPM) or cost per thousand impressions. PPI generates revenue based on the number of times people view the ads. The pay for this method tends to be low and often requires large amounts of traffic to gain a generous income.
Which Is Best for You?
To choose the right payment method, you will need to consider the type of content you have and the amount of time you can put into your online marketing efforts. If you have less time to put into marketing and more time into content creation, PPC or PPI ads can be an ideal choice. But if you want to focus on the marketing side rather than the content, PPL or PPS can be a great option.
Need a more sound and expert advice? Turn to AffiliateMission, an agency that offers affiliate marketing and management services. Aside from recruitment and relationship management, we can also assess your business and suggest the affiliate program that suits your needs best.
For further details about our services, you can call us at (888) 876-1702 or send us an e-mail at firstname.lastname@example.org.