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What is Affiliate Marketing Program and How it works?

July 11th, 2013

The search for establishing your business via new marketing tool gets end at affiliate marketing. Affiliate marketing is a new technique and strategy to run business intellectually. It is a marketing procedure in which the affiliate marketer refers someone to another company’s product or services to sale it. By doing this, the affiliate marketer gets commission on the particular sale. This helps the owner of enhance their business in terms of selling their produced goods and services. You can also say that it is a process of earning commission by promoting other people’s products.

For this process, when you sign up to an affiliate program of the company, it will give you a unique link for each product you want to promote. This revenue-sharing plan has different advertisers offer different types of affiliate programs. Under affiliate programs there are number of products are available and each product carry the link, it becomes hard for you to decide to which product you must sale as accordingly you will get the commission.

Here are some types of affiliate program such as:

Pay Per Sale
In pay per sale program the affiliate marketer get paid on each sale that you have done. As commission you will get a certain amount over the sale. Depending on the merchant, the commission may be for fixed for only purchase or for all purchases that customer makes within a fixed period of time (six month or one year).

Bounty (flat fee referral)
In bounty type of affiliate program the merchant many get agree to one-time bounty payment per each customer referred. In this program, you will not able to receive any future commissions on subsequent purchases. Bounty payments range $10 to $20 per customer.

Pay Per Click
In pay per click program, the merchant pay for each visitor’s visit which you send to the online merchant through a banner or text link. Doesn’t matter the sale is made or not. Companies pay $0.05 – $0.10 per click per visitor.

Two-Tier Programs
Whatever you originate, you get direct commission on the sale. Typically the merchants pay about 15% commission on direct sales affiliates by recruit. When you sign up to an affiliate program the company will give you a unique link for each product you want to promote.

Pay Per Lead
Pay per lead is almost similar to bounty program. Here on each and every lead you earn between $2 and $5 per each referred visitor who fills out a questionnaire or an application. You get paid a one-time fee for generating a lead for the merchant.