You can actually start to make money online by selling other peoples product with affiliate marketing. You don’t need to have or create your product before selling, that is the most important part of Internet marketing!
What is affiliate marketing
Affiliate marketing is a type of performance based marketing and it is about promoting products and services through the internet (for example from your blog or your website). In other words affiliate marketing is an agreement between the affiliate and the advertiser; the affiliate agrees to promote the advertiser’s product and drive targeted traffic (potential customers) to the advertiser’s site. Each time this traffic generates a product sale for the advertiser, the affiliate earns a commission. This model of payment is called CPA (cost per action). In our example the action is to buy a product but there are many more types of affiliate marketing. Read more on how to promote affiliate products
Types of affiliate marketing
There are different types of affiliate marketing and they are:
- PPC (Pay per click)
- CPA (Cost per action)
- PPS (Pay per sale)
- PPL (Pay per lead)
PPC is perhaps the most easy way for an affiliate to earn some money online. In this affiliate marketing type, the advertiser pays the affiliate whenever a visitor clicks on the ad which leads to the advertiser’s web page (where he further promotes his product). In PPC the affiliate will get paid even if the user that he referred does not buy the advertiser’s product.
The best PPC network is by far Google’s AdSense , how much you can actually make from PPC depends from your traffic and your niche. Different niches have different CPC (cost per click). PPC affiliate marketing is perhaps the most easy to implement to your site or blog but because the CPC could be anything between $0,05 and $10 you should perform good keyword research and choose your niche wisely.
CPA or PPP
CPA stands for cost per action, some call this type of affiliate marketing PPP (pay per performance). This type of affiliate is perhaps the most beneficial for the affiliate and the advertiser. It is a win-win scenario because the advertiser has to pay only when a referral (someone that clicked on the ad) performs some predetermined action. The action can be a sale of the advertiser’s product, a participation in a contest, an email submits – it can be a series of promoting actions.
Usually only people who are really interested about the advertiser’s product will actually perform the action that is needed, so the advertiser can rest assure that he pays for traffic that is very targeted. He pays only for users who are really interested about his product. On the other hand each time a referral performs the predetermined action, the affiliate earns a commission which is significantly larger than the cost per click of a pay per click advertisement.
CPA (or PPP) can be further classified to PPS and PPL
In PPS (pay per sale) the affiliate will earn a commission each time one of the referrals buys the advertiser’s product. The amount of the commission obviously depends from the value of the product and is predefined by the advertiser. Generally, the commission an affiliate can earn from PPS is much higher than the commission from PPC advertisements.
Must Read: Affiliate Marketing: How to Get Started
In PPL (pay per lead) the affiliate will earn a commission every time one of the referrals fill up a form or an application, sign up for a contest, and in other words perform a predetermined action that could lead to a sale. The amount of the commission is predetermined from the advertiser who hopes to turn some of the leads into sales. That’s why it is important to always promote affiliate products that are closely related to your niche. This way you will be able to send high quality targeted traffic which is more likely to convert to clicks, sales, leads or whatever you are promoting.