Information for Advertisers.
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Affiliate commission. With plan to choose.
PPC, PPP, PPS, PPL
For webmasters new to affiliate marketing
,
some of the terms might not always be so easy to understand. While some terms are less important
, you at least need to understand the different commission types available
Affiliate commission Choosing a revenue option
When choosing an affiliate program.,
the commission offered is - obviously - very important.
So is the commission type. Should you choose a program that pays you for every visitor you send their way
,
so called PPC?
Or should you go with the option of sharing the revenue for that particular visitor?
Fixed commission or a percentage?
The options are many, there is no general answer to what is best.
,
The options are many, there is no general answer to what is best.
Its up to you to decide where to send your visitors, to experiment, evaluate and finally choose one or a few affiliate programs best suited for your needs.
,
Its up to you to decide where to send your visitors, to experiment, evaluate and finally choose one or a few affiliate programs best suited for your needs.
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PPC Paid per Click
Many affiliate programs offer you a - fixed or varied - commission for every visitor you send their way.
Often these programs are similar to Googles Adsense program
,
namely contextual advertising. The advantages of this are many, but so are the limitations.
The main advantage is just the contextual bit,
the task of placing relevant ads on every page is gone
,
and all you need to do is choose what program to join.
Another great advantage is because of the flexible nature of these programs
, you will only need to join one program
, making it easier to reach the payout threshold.
The downside of it all is the revenue.
If you can target your visitors, and subsequently what they are looking for
, you can make a much larger profit with other types of affiliate programs. But, it will require far more work.
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PPP Paid per Performance
This is a more lucrative way to earn advertising revenue from your website but it is also more challenging.
Similar to PPC and PPP advertisers give you HTML code that you add to the relevant spaces on the page when you create a website.
This rates advertisements that do not generate any income until the person clicking on them has actually committed to a purchase.
The commissions are much higher than PPC because the number of people committing to a purchase is much lower than the number of people clicking through the advert.
Merchants is type of affiliate advertising because they only pay out when they make a sale and not just when they receive a lead.
Although PPP can be subdivided into Pay-Per-Sale (PPS) or Pay-Per-Lead (PPL)
,
most websites who operate PPP restrict themselves to PPS.
PPL is used mostly by companies that require an application form to be filled out to initiate a sales process
,
such as a loan company or insurance agent.
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PPS Paid per Sale
This type of commission is based on the activities of the visitors you refer to the affiliate website.
If you send active visitors
,
who shop a lot, this can be a goldmine compared to PPC and PPM.
The type of commission varies as well. It can be a percentage of the sale, a fixed amount per sale/signup or a combination of both.
What to choose is very dependant on your audience, and what category of program you are looking for.
In some cases, often with a recurring commission, the option of sharing the revenue,
thus getting a percentage of the total order, rake or what have you,
will be far better than choosing a fixed amount per sale. The dynamics of percentage vs. revenue sharing will be looked at more deeply later on. | |
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PPL Paid per Lead
This is roughly the same as PPS. But you get paid for leads instead of sales.
This is a fairly uncommon commission method
,
but it often applies to specific categories of affiliate programs;
Insurance companies, financial institutes and other companies with high priced products in competitive markets.
If you have a site targeting visitors looking for these kinds of products
,
this can be a highly interesting revenue model for you.
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