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Affiliate Marketing Series Part Two

Critiqued by Cowboytf | February 25, 2008 .

This is part two of my Affiliate Marketing series.  You can read part one here.  This series is geared towards newbies mostly but will have information that I’m sure will be useful to everyone.

We previously left off with the 4 ways to earn income as an affiliate.  Just a quick scan on what I wrote about:

  • I explained the definition of affiliate marketing and how it works.
  • I also discussed the 4 ways an affiliate earns money. 
  1. PPC(Pay-Per-Click)
  2. PPS(Pay-Per-Sale)
  3. PPL(Pay-Per-Lead)
  4. PPA(Pay-Per-Action)

I only explained PPS so we will continue with the remaining now.

Let’s start with Pay Per Lead, a highly popular means of promotion.  Basically, you are paid when someone fills out and submits a form.  This is common with insurance companies, loans, and any other service.  All leads must be legitimate.  In other words, if the person gives a fake phone number so that the company cannot contact them, then you won’t get paid. 

Why is Pay Per Lead so popular?  Simple.  The conversions are higher because the visitor is not required to buy anything.   Keep this in mind folks, the conversions may be higher but the payout is not as much as you might received from a Pay Per Sale. 

Here’s an example of PPL:

 

Project Payday converts when the user signs up for a free account.  When the user completes sign up, I’ll get paid $1.50 per lead. 

Pay Per Action

This is just like it sounds.  You are paid when the visitor tries the service out.  Examples include software downloads, installing toolbars or using a service before you buy.  Some will require a small  shipping/processing fee like in the example below.

Example of PPA:

With My Credit Card Cash, it converts when the user signs up and pays $1 for the free trial website.   The user is basically paying a dollar to give a try.   This lead pays $17. 

Pay Per Click

This is not so popular anymore due to all the fraudulent clicking.  There are very few merchants that still do this but it’s simple to explain.  You get paid when a visitor clicks on the provided link.  If you have a lot of traffic like John Chow or Problogger, then this converts and pays well.  I won’t give examples because I don’t want any fraudulent clicking going on.

If you would like to find some programs that offer PPC and/or contextual ads, check these adsense alternatives out.  If you know about adsense already and want some premade adsense templates, then you can find those here.

That concludes the 4 ways an affiliate gets paid.  I realize it’s a short post but I wanted to start the next topic with a post of it’s own.  In the next series, we will talk about finding the right affiliate networks to join and how to promote them.  AND, I’m really tired from my long weekend.  I could really use one of those caribbean cruises right now, or perhaps just come Calgon will do the trick!  I wouldn’t have time for a vacation even if I wanted to.  See ya next series! 

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Table of contents for Affiliate Marketing Series

  1. Affiliate Marketing Series Part One
  2. Affiliate Marketing Series Part Two

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5 Comments so far
  1. [...] Original post by Cowboytf [...]

  2. Cowboytf  February 27, 2008 12:13 am

    This is a test comment.

  3. Daily Data | Blogging with Cents  February 27, 2008 10:53 pm

    [...] briefly mentioned in my affiliate marketing series that PPL (Pay Per Lead) goes hand in hand with insurance, etc. so you may want to check that out [...]

  4. Affiliate Marketing  March 4, 2008 3:23 am

    Hi,
    Thanks a lot for the information. This is a great article as could really get a lot of information regarding the types of affiliate marketing. It is very well explained and easy to understand.

  5. Affiliate Marketing  March 4, 2008 3:23 am

    Hi,
    Thanks a lot for the information. This is a great article as i could really get a lot of information regarding the types of affiliate marketing. It is very well explained and easy to understand.