Affiliate Marketing Main Compensation Methods and Packages

Affiliate marketing can simply be described as a partnership fostered between traders or merchants and website holders. Within this business partnership, both the merchants and website publishers benefit mutually, and the affiliate is charged with the sole task of attracting clients to make purchases on the various commodities available.

The affiliates at times even work from home and are compensated based on how many visitors they direct towards purchasing the commodities available. Anytime a customer makes a purchase, a certain amount of the money is deducted and deposited into the affiliates account as compensation for their efforts.

Payments for affiliate marketing are calculated based on various fixed values

Pay per click

In this case, the compensation is calculated based on how many individuals click on the posted advertisement. The compensation is made when the target customer clicks on the advertisement to also view the advertiser’s website and what it offers. This compensatio0n method however is becoming less recognizable.

This is due to issues of click fraud, whereby website owners would fraudulently hire ghost individuals to visit these advertisements with no intention of making a purchase or viewing the advertisement.

Pay per lead

Also known as cost per mille. In this case, you as the website holder will only have to put up the advertisement on your web site to receive compensation. Therefore, you only have to make the advertisement available and accessible to clients to receive your compensation from the merchants.

Compensation is usually estimated per every 1000 views the advertisement gets on the website. This can be a way to earn extra cash and even enable you to quit your day job and work from home.

Pay per sale

In this form of Internet marketing, you will need to go an extra mile to earn extra cash. You as the affiliate will need to ensure that at the end of the day the customers that view the advert are converted into making valid purchases.

Compensation is based on the amount of money collected from each sale. For every sale made a certain percentage of the money is deposited into your account based on the value of the purchase made.

This form of compensation is also referred to cost per sale or action.

About eighty percent of the current affiliate programs utilize the pay per sale compensation methods. Merchants prefer this method because they understand that they will reap maximum revenues from this arrangement in comparison to the cost per click and cost per mille compensation methods.

The pay per sale payment ratio is considered by merchants to be a revenue sharing compensation module and thus the most recommended compensation packages.

More people are understanding how these programs work. You can actually build a website and earn extra cash or even earn a full time income that will empower you to quit your day job altogether. It is a relief when you can actually work from the comfort of your house and still be able to keep up with your bills and financial commitment.

Joel Toutebon is the author of this article on Earn extra cash. Find more information, about build a website here