Payment structures to expect when looking to make money with affiliate marketing
For those looking to make money from affiliate marketing, there is reason to be optimistic. This is an area of Internet marketing that entrepreneurs have thrived in over the years and continues to thrive. But one area that can confuse some is the payment structure that different programs use.
As you start to make money with affiliate marketing, you will notice that there are different ways to make a profit. There are basically three different ways to make money with affiliate marketing: pay per lead, pay per sale, and pay per click.
Pay per lead is a form of affiliate marketing structure that will send advertiser dollars to you, the affiliate. Through this method, advertisers pay the affiliate based on specific targeted actions. This can range from getting people to sign up for newsletters or getting people to try out a software download.
The next option to make money with affiliate marketing is pay per sale. While this is quite similar to paying per lead, this method is actually more concerned with closing the deal. With this, you will earn based on a fixed percentage of each product you sell or a fixed price, regardless of how much you sell.
The last way to make money with affiliate marketing is pay per click. This is very different from the other methods due to the fact that advertisers pay publishers as soon as their ad is clicked. This is still a very popular option with search engines. But this is an area that largely depends on the cost per click and what the search engine network operators set.
It doesn’t take long to realize that all affiliate programs have different and personalized ways of paying affiliates. Just know that with most companies you will earn a specific commission for any product or service you sell.
There are some companies that offer 70-80% commission on all sales and others that offer a minimum of 15%. However, this does not mean that the obvious company to join is the one that offers the highest commission.
This is where it becomes crucial that you look at the big picture to make money with affiliate marketing. If each company offers a different product for $10 but the company that pays the 70% commission only generates enough traffic to create 2 sales a week, you will only earn $14.
Now, if the company that offers a 15% commission generates waves of traffic that allow you to close 20 sales in a week, you will earn $30. Obviously, you have to sell more to make up the difference, but don’t always join the company with the highest commission rate, as the product and service offered are equally important when it comes time to make money with affiliate marketing. .
