affiliatepays.com

Affiliate marketing is the modern and technology-based Internet version of the already established marketing practice called “finder’s fee”.  This affiliate marketing practice aims to promote the business of a particular online business.  The entity that conducts the affiliate marketing is called the affiliate.  This affiliate may be one person or a group of persons.

Basically, the affiliate introduces new clients to an online business.  With new clients, the business of the online company expands.  And through the process, the affiliate earns compensation.

The compensation earned by the affiliates will depend on the action made by the target clients.  Based on the target clients’ actions, an affiliate may earn through three different ways.  These are known as “pay per click”, “pay per lead”, and “pay per sale”.

In “pay per click”, the affiliate earns when he has motivated a target client to visit the website of the online company for which the affiliate conducts the promotion and marketing.  For every visit made to the Internet company’s website that came from the affiliate’s site, the affiliate receives a compensation.  In essence, the affiliate earns compensation for every referred visitor.

In “pay per lead”, the affiliate earns when the potential client that he has referred to the online company signs up with the online business.  This client has become a registrant or a subscriber.  From the marketing people’s point of view, the registrant is a “lead” to more clients, which could mean business growth.  Thus, the affiliate is compensated for every referred registrant or subscriber.

In “pay per sale”, the affiliate earns compensation when the potential client actually patronizes or buys the products of the online company.   The potential client becomes a paying customer.  And the compensation given to the affiliate is sometimes called a “commission”.  In “pay per sale”, the affiliate earns a commission out of the sales brought by the customer.

In comparing the three ways of earning compensation, the “pay per click” earns the least amount per target client, whereas the “pay per sale” earns the greatest amount per target client.  Yet, the “pay per click” compensation is predicted to be more often than the “pay per sale”.

An affiliate marketing program may focus on any one of the above described compensation packages for the affiliates.  But an affiliate marketing program may also utilize a combination of these compensation deals.  Any person who plans to get involve in affiliate marketing must decide the type of compensation package that he will want from the online company.