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Different Types of Affiliate Marketing

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									       Affiliate Marketing: Different Types
Affiliate Marketing is classified into many types. All kinds fall under two basic categories.
These are pay/click and pay/performance.

Pay/Click

It is also called PPC. It is considered to be the easiest and most popular affiliate
marketing method. This is the greatest thing for small websites. With this method the
affiliate marketer places the banners and text ads of merchants on his website. The
affiliate is paid for every click made on these banners. When any visitor clicks on these
banners and visits the merchant website, the affiliate gets credited. It is not essential that
the visitor makes a purchase. However, the typical earning for a single click is very
small, usually less than one dollar.

Pay/Performance

Pay/performance affiliate marketing, also called PPC, is extremely famous among big
affiliates and all types of merchants. In this method the affiliate gets credited only when
any visitor from their affiliate id performs the required action. This required action may be
a purchase or becoming a member of a merchant website. This method is very good for
the merchants because they will only pay when they are paid. For affiliates, it is
attractive because they are getting a good share in the sales of merchant products. The
usual share is about 15-20% of sale.

If we classify the affiliate marketing on the basis of depth, then it can be divided into 3
classes. These are single-, two-tier and multi-tier programs. Another type is the one in
which an affiliate marketer is paid for every sale that is made by a person referred by
him. This is called residual income affiliate marketing. Let us study these types in detail.

Affiliate Marketing: 1-Tier, 2-Tier & Multi-Tier

In an affiliate program of single-tier nature, the affiliates get the commission, only, for the
visitor’s traffic or sales to the merchant’s website. Pay/performance and pay/click fall
under this category.

Talking about Two-tier marketing, the affiliate gets the commission for every action done
by the visitors referred by him. Plus he will get the profit whenever some other affiliate,
referred by him, gets the commission. So in this way affiliate is earning directly as well
as indirectly.

The multi-tier marketing is the same as two-tier marketing. But in this type, the affiliates
get the commission for the sales made by their affiliated affiliates in multiple tiers. The
depth           of         this        type          may            be           unlimited.

Residual Income Marketing

In this type of marketing, affiliates get the commission for every sale that his referred
person makes on the merchant website. The only requirement is that on the first time
visit, the person should come from the affiliate link of the affiliate. Next time if the same
person visits the merchant website, even without using the affiliate link, the affiliate will
be paid for every sale made by the visitor. The question that arises is how the merchant
will know the affiliate id. The answer is very simple. On the first visit of the person from
the affiliate website, a cookie is created on the computer of the visitor. This cookie stores
the affiliate id of the affiliate. This cookie usually expires after 3 months. In some cases it
may be longer. Whenever a visitor visits the merchant website, the visitor’s computer is
checked for the existence of any previously created cookie. If the cookie is found, the
affiliate id is retrieved from it and the affiliate gets credited for any purchase made by the
visitor.

								
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