With a boom in the e-commerce industry, there had been a great change in the way companies are marketing themselves. Affiliate marketing has also become very popular in the online marketing arena and nowadays affiliate marketing has become the main way of advertising the products through the affiliates.
According to Wikipedia, affiliate marketing is a type of performance based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliates own marketing efforts. As the e-commerce industry is growing and has become a popular way of doing business, a number of scopes in affiliate marketing have sprung up. To understand the scopes in this field, firstly let us see the different types of affiliate marketing that are there.
Affiliate Marketing can be basically classified into two types:
Pay Per Click (PPC)
PPC is the most common method used by affiliate marketers to earn money easily. Whenever a customer clicks a banner or ad that has been displayed on the affiliate’s website and visits the merchant’s website, the affiliate gets paid for the action. The affiliate gets a certain amount even if no purchase is made by the customer visiting from that site.
Pay Per Performance (PPP)
This type of affiliate marketing is popular among the merchants and the affiliates have the possibility of earning larger amounts through these method. In this method, the affiliates get paid only if an action is made through the ads published in their site. Action means that anything that leads to the increase in sales of the merchant. High commissions are usually paid to the affiliate.
PPP can be further classified into two types according to the type of requirements –
Pay Per Sale (PPS)
In PPS, affiliates are paid a commission or a fixed pay whenever the customer actually buys something after clicking an ad posted by the merchant on the affiliate’s site.
Pay Per Lead (PPL)
PPL is usually done by merchants who rely on leads to grow their sales. In PPL, the affiliates get paid on a fixed-pay basis whenever a potential customer fills up a form or provides information which the merchant can use it for their sales.
Apart from the type of affiliate marketing mentioned above, there are other types which are classified according to the depth of affiliate and customer response.
Single-tier, two-tier and multi-tier
In single-tier, there is a single layer of connection between the merchant and the affiliate. It is based on the sales that have been
referred to by the affiliate.
In two-tier and multi-tier, an affiliate can earn extra money whenever a sale has been made by other affiliates who joined the marketing program through the former’s recommendation.
Residual Income Affiliate Marketing
In residual income affiliate marketing, the affiliates get a commission or a fee for each the time a customer, referred by the affiliate, makes a purchase.
Looking at the potential of affiliate marketing there are a lot of options that you can choose from. With an increasing number of businesses going online, there are a lot of opportunities from both the advertiser and publisher side.
Opportunities from the Advertiser’s Side
Advertisers are the merchants who want to sell their products online. For this purpose they want publishers that can advertise their products and form an affiliate with them. To have good affiliates who can provide a lot of traffic to the website, the merchants want professionals who have a good knowledge about affiliate marketing and make great decisions about which affiliates can provide better traffic. The advertisers also need god professionals who can analyse the return of investment (ROI) and the cost of affiliations to provide better decisions. Apart from that it needs creative professionals that can make attractive ad content that publishers can use to advertise a certain product or the website as a whole.
Opportunities from the Publisher’s Side
Publishers are the affiliates that publish the advertisement related to the merchants who want their products sold. Publishers provide the traffic to the merchant’s website or their product page and get a commission or a fee in return. Publishers to maintain a steady income from affiliate marketing they need good content which can get them as many viewers they need that will be potential customers. For this, they need good content writers. To maintain the website and make it run without any problems, they need technical professionals. For proper decisions about which advertisers can be more beneficial than others, they need professionals who have a sound knowledge about affiliate marketing.
Affiliate marketing is becoming a popular way to market the products hassle-free and get a larger audience from different sources. There are large opportunity avenues that you can discover in this area if you have a good knowledge about affiliate marketing or its related field.
Author Bio – Hasib is a foodie and an avid reader with the same voracious appetite. He is interested in the current trends in job market and time to time writes about employment and career related topics. Reach him @ twitter, Google+, LinkedIn