Affiliate marketing has long been a popular trend online. Most web sites don't mind paying a little bit of money to have traffic driven their way. Currently, pay-per-lead affiliate programs are the most popular flavor of this strategy.
With pay-per-lead, affiliates are paid when a site visitor takes a desired action such as requesting a quote or scheduling a free demonstration. By taking this action, the visitor officially becomes a lead and that means they become good candidates for future sales.
While there are definite benefits to this method of affiliate marketing, there are other flavors you might want to consider when determining the best plan for your business.
Pay-Per-Click (PPC) Affiliate Marketing
In PPC program, the affiliate is paid for each unique visitor brought to the seller's website. For example, the affiliate may have published a review of the seller's product and included a link. Each time a new visitor clicks on that link, the affiliate is earning money.
While PPC programs are the easiest from the affiliate's perspective, they usually don't generate very much money. A tiny portion of the generated traffic is converted to actual buyers so it's less valuable than what is generated through pay-per-lead affiliate marketing.
Pay-Per-Sale (PPS) Affiliate Marketing
As the name suggests, this type of affiliate program pays for each sale that results from traffic generated by an affiliate. Because this traffic is so valuable, companies are willing to pay affiliates a premium for bringing it to them, especially in highly competitive fields.
Sometimes PPS marketing is combined with pay-per-lead affiliate programs to form a two-tier pay-out structure.
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