If you would like to learn more about Affiliate Marketing Basics . . .
Affiliate Marketing is a simple business model based strictly on the performance of the affiliate marketer the business agreement between the creator and the marketer is based solely on the principles that the business pays nothing until the marketer performs their duty or their end of the agreement. Now in different models that duty the marketer is required to do to receive some sort of compensation differs slightly, not only that but there are many different ways the affiliate receives their compensation for the duties performed from the organization.
HOW AFFILIATE MARKETERS MAKE MONEY
Here’s some of the more common ways or tasks require from organizations of their affiliate marketers’ to perform or produce as per a priorly signed or verbally agreed upon compensation payment agreement arrangement, this is often called the affiliate program agreement, or in Amazon’s case they call it the Amazon Associates program check it out here for them to receive a payment for accomplishing exactly what the organization requests for them to complete:
1. Paid for Ads or Placed Ads Regardless of what people call them they are you’re simply paid for advertisements and the Affiliate Marketer gets paid (hence the name Paid-for-Ads) every time someone clicks or the ads that are posted or placed (hence the name Placed Ads) on their Website. When the search engines do their scans of the webpages from within an Affiliate Marketer’s website they don’t like to find a large number of ads placed within the site they feel it makes the site more of a directional device than an informative material and if too many ads are placed within a website it could potentially hurt the SEO ranking of the website, so any affiliate marketers that are going to opt into using paid for ads should do it with extreme caution as not to get penalized by the search engines.
2. Coupons this is where the affiliate marketer basically offers the potential customer a coupon for a product that they are promoting on their website at a reduced or discounted price. In return for every coupon used online or in a brick and mortar store (like your local grocery store) then the affiliate makes a commission based on the value of the sale it is traced by the code itself; each affiliate will hand out coupons with different codes on them. This is one of the lowest paying forms of affiliate compensation simply because the price margins on food items are not nearly as high as non-food item markups they normally pay anywhere from 2-5 cents per coupons used. On a side note, this is one of the cheapest websites to operate most don’t even advertise because most of these styled websites have 2 to 10 million subscribers, because everyone is always looking for ways to save a few dollars here and there.
3. Sign-Ups This is a commission based system where the affiliate is compensated not for products sales, but for subscriptions sold. This is where the producer or creator provides a monthly service, monthly subscriptions, or monthly access fees to a service. Some of these payments plan a will include compensates to the affiliate for simple customer signup to a free membership or free trial period of the services, then pays an additional compensation if the customer upgrades to a subscription or monthly access. This would work in affiliates for things like Amazon Prime, Prepaid Legal advice or representation, training programs, or business faxing services.
FOUR DIFFERENT COST PAYMENT PLANS
Now how the process is done in all of the CPP Cost Payment Plans can differ greatly and in most cases it is up to the individual Affiliate Marketer on how the product will be presented, as long as the affiliate complies with the Maker or Creator’s code of conduct and image policies, and this is where different strategies or methods are applied to entice the potential buyers to click on the link and actually make a purchase while visiting the merchant’s e-commerce website.
4. The first is the CPA Cost-per-acquisition can be paid, it’s the most common payment plan utilized by most of the industry today and it is the basic sales commission, much like the traditional door-to-door salesperson would make a commission from any sales that they bring to the merchants online store. So when a potential customer clicks on the affiliate’s hyperlink, visits the store, and makes an actual purchase of something the affiliate earns a commission from those sales.
Here is a sample of what a HYPERLINK will look like if placed within written text, if you click on the hyperlink it will open to the link under the highlighted text or alt text and this page will either open to a new page, where the link directs the activator (the person that clicked on the hyperlink) to or it will cause a new window to open and show the page that the link under it directed it to.
5. CPC Cost-per-click, sometimes its’ called PPC Pay-per-click, or it’s also called by some as Click-Through regardless what you call it this model is pretty much self-descriptive meaning the organization or vendor pays every time the advertisement is clicked on. If the potential customer makes a purchase or subscribes to service is irrelevant in this model because it is the initial click on the hyperlink that provokes the payment not a purchase afterward. So the CPA model is much more liked and utilized by the merchant whenever possible, but in some cases, if the product is not that popular or a name brand the creator or retailers may have to rely on the CPC method to get affiliate’s to place their ads on their websites.
6. CPL Cost-per-lead this method is also self-descriptive of itself, it is sort of a system is much like the CPA system except the customer does not have to purchase anything for the affiliate to get paid, but much like in the CPL system the affiliate must get the potential customer to do a certain action. These actions most commonly are constructed free profiles on the merchants’ website or sign up for a weekly newsletter. So this system sort of rides in the middle of the CPA and CPC models the affiliate has to get the customer to perform an action but that action does not involve a purchase of any type. So, in this model, the affiliate gets paid for leads (potential customers that are brought to the businesses’ core product or product line awareness.
7. CPM Cost-per-mille finally we have the elite of the elite; first off “mille” is an Old Latin term for one thousand, so this model the affiliate gets paid for every one thousand potential customers they provide to the service provider or seller. This model is used by for the least, roughly in only about 2-3% of the time, it is when the business or organizational entity has a strong sales staff to close its own deals, and relies on a strong or very popular blogger to draw in a large number of potential customers to its website. This model the store owner or maker does their own customer conversations and only rely on the customers brought to them much like in the pay for click model with a slight caveat the potential customer must stay logged into the website for a predetermined amount of time to allow the sales staff to try to entice the visitor to possibly make a purchase while logged onto the said website typically this is used by travel agencies or insurance providers
These are by no means the only ways that Affiliate Marketers can make money from their blogging websites, they are just some examples of the more common ways most bloggers today are implementing to provide them with a revenue for their efforts.
If you would like to learn more about Affiliate Marketing Basics . . .
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