The different types of affiliate programs
There are probably several affiliate marketing types, but these are the three most commonly used and best ones. We will look at them one after another paying attention to their advantages and advantages. This will help you make the right choices and possibly join me in cutting out your own share of the loads of money that comes through affiliate marketing.
#1: Pay per sale (PPS)
In a pay per sale affiliate program, a merchant (seller) pays you a percentage of the sale price when the purchase is completed.
Advantages: Through the PPS program, you can sign up with most merchants and start promoting their products right away. You don’t have to go through a long process to be approved. You can earn a lot more than with the Pay per click (PPC) or Pay per lead (PPL) programs especially if you are promoting digital products or services where sales commission ranges between 50% to 75%. You mustn’t have a high-traffic volume site in order to earn money through PPS. You can start earning money even without a website.
Disadvantage: Since most merchants do not limit entry to the PPS program, it is
highly competitive and only those who actually use a clear plan succeed. Also, your commissions are reversed in case someone refunds the purchased item. More to that, your income is totally dependent on customers’ ability to pay for services/products.
#2: Pay per click (PPC)
With PPC, you get paid based on the number of visitors you redirect to the Merchant’s website through your affiliate link placed either in your website or elsewhere irrespective of whether a sale is made or not. These are often served through an ad network like Google AdSense, Chitika, Bidvertiser, Clicksor and Yahoo! Advertising.
Advantages: If your blog brings in high traffic levels then displaying PPC adverts can be a quick and easy way to make steady revenue. If your blog is good at keeping your users on the pages then PPC ads can work well for driving high conversions, especially with in-post ads.
The big advantage of using a PPC network is that it takes just minutes to set up and you don’t really need any coding knowledge to implement it within your blog.
On top of this, PPC ads can easily be displayed within your blog posts to give extra impressions and revenue potentials – a quick way to do this is to create a WordPress short code to display your ad code (which saves you a lot of time otherwise spent copying & pasting).
Disadvantages: Unless you’re bringing in large volumes to your blog (over 50,000 visits a month), PPC ads aren’t going to give you the kind of revenue figures that you could get from other monetization sources. Many people ignore the ultimate need to rightly optimize your site, post high quality and original content and generate high traffic to their sites. Consequently, they end at earning cents daily. Yes, PPC ads are quick and easy to set up, but if you’re not making any money from them then what’s the point?
Another thing to consider is that the ads aren’t always the most aesthetically pleasing, and you don’t get to choose the exact ads that will be displayed – this can compromise your design, cheapen the site’s look and even have adverse effects on page load times (because you’re loading them from an external server instead of your own).
#3: Pay per lead (PPL)
You get paid once the referred visitor signs up for the product/service or provides his or her contact information on the target site by filling out a simple contact form.
Advantages: Unlike PPS, you are not subjected to any refund since customers do not have to make a purchase before you can earn commissions. Just like PPC, you can earn a lot of money if you have a high-traffic volume blog or website. Plus, it’s really easy to set up.
Disadvantages: Most merchants will turn down your application to their affiliate program if you don’t have a high-traffic volume site. Some of the merchants specifically require that your website has a good ranking on alexa.com. This is frustrating.