Where a pay per lead agreement is made between an merchant and an affiliate marketer the advertiser will only pay them for leads which have been generated through their website. Also it should be noted that no payment is made by the merchant if the visitor's do not sign up.
Generally when we are talking of leads in relation to pay per lead we mean that the person has signed up by providing some contact information on themselves and even some demographic information as well. Typically such leads will be a non-cash conversion event and the lead provided may just be a person's e-mail address and nothing else. But for some sites they may ask the leads that an affiliate marketer provides with a more detailed multi page form to be completed before it is accepted as a pay per lead.
Certainly today the pay per lead merchants are some of the more desirable types of merchants that people will promote on the web. In some cases the conversion rate they offer on these pay per lead (PPL) programs can be better than those offered for pay per sale (PPS). Simply because the visitor does not need to purchase anything all they need to do is complete an online form in order for you as the marketer to get paid.
However there are disadvantages to be had if you decide to be a pay per lead affiliate marketer. One such disadvantage is that the commission you receive on a PPL can be less than that on a PPS program. Also you may find it difficult in some cases to send qualified leads from your website to the merchant in question especially when they expect you to provide them with US leads and yet your site caters to non-US visitors.
Another big risk that can be faced by a merchant is the potential for a fraudulent activity to take place which can be caused either by a third party who is be stimulated by a marketer to produce a lead for them or by marketing partners. However such false leads are often easy to spot.
When becoming an affiliate marketer for a merchant using a pay per lead program they will often pay you a set amount for each new visitor that you send to their site and as long as they perform a particular action. In this respect the action can either be to join their program (whether it is an online course or training program), or they sign up for the site's newsletter or it could be as simple as them completing a survey form. But whatever it is normally this is one of the best ways to start earning money online and does not require any outlay from you in the first place.
Stephen Chua is an online entrepreneur who is earning an income as a content publisher using the pay per lead business model. If you are interested to learn more about pay per lead business model, please subscribe to his free “Pay Per Lead" mini course at http://payperleadprofits.info today!