Revenue Generation Models of Affiliate Marketing

Affiliate marketing is an internet based marketing practice marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. It is one of the different kinds of internet based marketing practices. Affiliate marketing is a win-win situation where the manufacturer will be able to receive as many website visitors because there are many affiliates that will lead customers to his website. On the other hand, the affiliate is going to receive handsome commission by leading customers to the manufacturers website.

Affiliate marketing is often advantageous over other Internet marketing methods to some degree, because affiliates often use regular advertising methods which helps to constantly remind the customers about the products and services offered. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner

Types of Revenue Generation Models:-

1. Pay Per Click

2. Pay Per Lead

3. Pay Per Sale

Pay per click

Pay per click is an affiliate marketing program where the manufacturer of a product will post a banner on the affiliate website. A click will be counted once an internet browser clicks on the banner advertisement, and accordingly the affiliate is going to earn a certain percentage commission.

Pay per lead

Pay per lead and pay per click are similar in nature. The only difference is that you are able to send a lead or an internet browser who will not only clicks on the link but also checks out the manufacturers website. This means that the customer is interests or is a potential customer; he may take advantage of freebies that may help him understand the product more. He is a potential customer and thus a good lead. By ensuring that the visitor is a good lead, the affiliate will receive a certain commission.

Pay per sale

While the affiliate is not going to receive any commission until the customer purchases the product being advertised, it is still worthy to enter this type of affiliate marketing program. This is because under the pay per sale scheme, the affiliate has the potential of earning between 20-70% of the total purchase price. It is always better to enter affiliate programs under the pay per sale commission scheme because every sale will earn you good. You may also create articles that will excite the customer and giving them the benefits they can get from the product.

Advantages of Affiliate Marketing:-

In Affiliate Marketing we sell affiliate products as they are our own products but we do not have to bear the cost of creating a product.

We do not have to buy any physical stock and store the products.

We will not have to keep track of the inventory.

We will not have to handle any credit card transactions, it will be the merchant who will settle it.