How Pricing and Payment works

There are a number of pricing models which are used in affiliate marketing which vary between networks and advertisers. Payments are made monthly once a set amount is reached.

Pay-Per Sale - Payment is made through a commission from the sale of a product or use of a service. Payments will not be made if a user clicks on a link; affiliates will receive commission payment if a user who clicks is converted to an
acquisition.

Tiered Commission - In this case merchants adjust commission based on how well the affiliate performs for them. This can be based on total sales or on a sales per month basis.

Pay-Per Lead - Some merchants will offer a fixed fee when a user signs up to a service such as a daily newsletter.

Combined Pricing Structures - Sometimes a commission is paid in combination with a 'bonus' payment for a first time customer or a sign up to a news letter. Some offer an option to receive payment based on either cost per sale or on a percentage commission basis.

Pay-Per Click - Many networks operate on a pay per click model where affiliates are paid for each visitor originating from their site. Clicks will receive revenue regardless of an eventual sale but the amount paid per click will be far lower than an equivalent click that is converted to a sale (pay per sale).

Affiliate Marketing On the Increase.

Affiliate Marketing On the Increse

Continued unprecedented growth in the industry say top website.

In today’s day and age more and more business are looking to capitalise on the many opportunities offered by the digital world. As more businesses begin to realise the opportunities presented by the internet, affiliate marketing is beginning to gain a significant amount of attention.

Econsultancy say the affiliate marketing industry is estimated to have grown by 60% in 2006 to £2.16bn compared with £1.35bn in 2005. It would seem that the measurability of the affiliate marketing is making this medium an attractive proposition for marketers.

The process of affiliate marketing can be summed up fairly easily. A merchant, the creator of the product or service being sold, gives a special link to a publisher, also known as an affiliate. The publisher (affiliate) places the special link on their website, with their videos, in an e-newsletter and forums or anywhere else they think target customers might click the link. When a customer clicks the affiliate link they will be directed to the merchants’ site, where if they perform an action (usually a purchase) the affiliate is paid a commission.

In 1996 Amazon started the trend by introducing its ‘associate program’ which has proven that if done correctly there are many benefits for all involved. Although Amazon paved the way 10 years ago, there are a few sectors that have not yet made the most of its benefits. However, one sector that quickly embraced the sector is travel, which is evident from the many travel-price comparison and the hotel booking sites that have popped up all over the net.

So if you want to achieve sales as a merchant or drive traffic as a publisher, to be successful you have to give users content they want and the end product they are searching for in a relevant and mutually desirable environment.

In today’s day and age more and more business are looking to capitalise on the many opportunities offered by the digital world. As more businesses begin to realise the opportunities presented by the internet, affiliate marketing is beginning to gain a significant amount of attention.

Econsultancy say the affiliate marketing industry is estimated to have grown by 60% in 2006 to £2.16bn compared with £1.35bn in 2005. It would seem that the measurability of the affiliate marketing is making this medium an attractive proposition for marketers.

The process of affiliate marketing can be summed up fairly easily. A merchant, the creator of the product or service being sold, gives a special link to a publisher, also known as an affiliate. The publisher (affiliate) places the special link on their website, with their videos, in an e-newsletter and forums or anywhere else they think target customers might click the link. When a customer clicks the affiliate link they will be directed to the merchants’ site, where if they perform an action (usually a purchase) the affiliate is paid a commission.

In 1996 Amazon started the trend by introducing its ‘associate program’ which has proven that if done correctly there are many benefits for all involved. Although Amazon paved the way 10 years ago, there are a few sectors that have not yet made the most of its benefits. However, one sector that quickly embraced the sector is travel, which is evident from the many travel-price comparison and the hotel booking sites that have popped up all over the net.

So if you want to achieve sales as a merchant or drive traffic as a publisher, to be successful you have to give users content they want and the end product they are searching for in a relevant and mutually desirable environment.

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