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Make Money Online With Five Types Of Affiliate Marketing

Written by George Manty  · August 20, 2009

Recently, I talked about using affiliate marketing to make money online. So, today I’m going to discuss five of the best types of affiliate marketing for making big money online.

Pay Per Click (PPC) – Google Adsense

With PPC marketing the merchant pays affiliates whenever a visitor clicks on a merchant’s banner or text ad. The affiliate gets paid for every click even if the visitor he referred does not purchase anything from the merchant’s site.

Pay per click marketing is most closely associated with Google Adsense. Google Adsense is THE biggest money makers on my pure content sites. Adsense is a truly great way to make money with content sites and blogs.

The advantages of PPC systems like Adsense are:

1. Very easy to add to your site.
2. You don’t have to sell anything to make money with PPC.
3. You don’t have to choose programs to promote, the PPC system does that for you.

These advantages make PPC systems like Adsense very appealing to small websites and beginners. I, and many others that I know, have made a lot of money with Adsense.

Pay Per Sale (PPS)

PPS affiliate marketing is the most popular type used by merchants. In this type of affiliate program, the merchant only pays the affiliate whenever his referral buys a product. Affiliates are often paid on a commission basis (percentage of the sale), although some merchants pay a fixed fee. Commissions in PPS affiliate marketing can range from 1% to 100% of the sales.

Pay Per Lead (PPL)

Pay-per-lead (sometimes called Pay Per Action) is a type of affiliate marketing that is often used by insurance companies and other companies who rely on leads for their profits. The Death of Adsense ebook was a good example of Pay Per Lead in the Internet marketing industry. In this type of affiliate marketing, the affiliate is paid whenever the visitor he/she referred to the merchant’s site fills in an application form or takes an action that the merchant wants them to take. For example, a car insurance affiliate program will often want a person’s zip code to help find the best car insurance for them. Compensation for this type of affiliate marketing is a fixed fee and is often very lucrative for affiliates. In fact, one of my friends and mentors makes a nice income from pay per lead affiliate marketing.

In addition to the above types of affiliate marketing, there are other affiliate marketing types that enhance the earnings an affiliate can make.

Multi-Tier Affiliate Marketing

Some affiliate programs offer multiple tiers or levels that the affiliate can make money from. Single-tier affiliate marketing is the much more common than multi-tier, but multi-tier affiliate programs can be much more profitable. In a single-tier affiliate marketing program, the affiliates are paid based on the direct sales or traffic referred to the merchant.

In two-tier affiliate marketing programs, the affiliate is paid for for both the direct traffic or sales that he refers to the merchant’s site, AND all the clicks (PPC) or sales (PPS) or leads (PPL) referred by various other affiliates who joined the affiliate program through his affiliate link. Multi-tier affiliate marketing (3-tier, 4-tier, 5 tier, etc.) creates additional commission for the affiliates from the different tiers in the affiliate network. A good example of a multi-tier affiliate program is SiteSell which has 5 tiers.

Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid whenever the customer he/she has referred returns to the site and purchase another product or renews a membership, etc. Compensation for such type of affiliate marketing is usually based on a sales percentage or a fixed fee. Residual income affiliate marketing is most commonly used by membership sites. I personally love getting paid every month from affiliate programs that offer residual income and look for opportunities to join affiliate programs that offer residual income in the areas I promote.

This is a basic summary of these five types of affiliate marketing. The important thing, as with all other kinds of marketing, is to find what works for you and your business. Experiment with different programs and different types of affiliate marketing and find out what works best for you and your visitors. As with everything else in making money online, it’s all about the numbers. If a particular method isn’t making money for you, by all means try something else.

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One Response to “Make Money Online With Five Types Of Affiliate Marketing”

  1. Lori on September 20th, 2009 3:31 pm

    This is great information. I’ve looked briefly into affiliate marketing but am always wanting to learn more about it. Thanks for the post and I’ll be sure to follow your blog for more advice.