For those looking to make money with affiliate marketing, there is reason to be optimistic. This is an area of internet marketing that entrepreneurs have prospered from greatly over the years and continue to flourish from. But one area that can confuse some is the payment structure different programs use.
As you begin to make money with affiliate marketing, you will notice there are different ways to go about earning. There are essentially three different ways that you can make money from affiliate marketing: pay per lead, pay per sale and pay per click.
Pay per lead is a form of affiliate marketing structure that will send the advertiser’s dollars to you the affiliate. Through this method, the affiliate gets paid by the advertisers based on specific targeted actions. This could range anywhere from getting people to sign up for newsletters or to get people to try out a software download.
The next option to make money with affiliate marketing is pay per sale. While this is fairly similar to pay per lead, this method actually deals more with closing the transaction With this, you will either earn based on a set percentage of each product you sale or on a set price regardless of how much you sale.
The final way to make money using affiliate marketing is with pay per click. This is far different from the other methods because of the fact that advertisers are paying the publishers as soon as their ad is clicked. This continues to be a highly popular option with search engines. But this is an area that is highly dependent on cost per click and what is set by the search engine network operators.
It doesn’t take long to figure out that all affiliate programs have their different, custom ways of going about paying affiliates. Just know with most companies you will earn a specific commission for whatever products or services you sell.
There are some companies that offer as much as 70 to 80% commission on all sales and others that offer a minute 15%. However, this does not mean the obvious company to join is the one offering the higher commission.
This is where it becomes crucial you look at the overall picture in order to make money using affiliate marketing. If each company offers a different product for $10 but the company that pays 70% commission only generates enough traffic to create 2 sales a week, you’re only going to make $14.
Now if the company that offers 15% commission brings in waves of traffic allowing you to close 20 sales in one week, you are going to make $30. Obviously you have to sell more to make up for the difference, but don’t always join the company with the higher commission rate as the product and service offered is equally important when it comes time to make money using affiliate marketing.
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