Nov 1, 2009 0
Affiliate Marketing and Compensation
Internet and Affiliate Marketing Systems or How Will I be Paid?
If you do a basic review on Google examining the search phrase “Internet Marketing Systems” you are likely to be educated on the following topics: Pay Per Click, Pay Per Sale, Pay Per Performance, Pay Per Lead, Single and Multi-tiered Payment Plans, and Residual Income. While fascinating, they are NOT Internet and Affiliate Marketing Systems. More precisely they are plans of compensation to the marketer and a means of exchange of goods to the buyer.
So, what is the difference between an affiliatemarketing program and a system of compensation?
An Internet marketing system is: a structured plan representing a market in which a product(s) is identified and advertised, offered for sale, and includes an exchange device for transferring the product and the appropriate remuneration.
Basically, it’s what gets the customer the product and you the money when the advertising has persuaded the buyer that your market is valuable and the product(s) within worth purchasing.
This having been said and offered some change of terminology, we should cover the ways by which we get paid for our well thought out Internet marketing programs.
In review, an Internet and Affiliate Marketing Program consists of:
A market of goods
A product display-website or other “place” to see the goods
Pay Per Sale is the compensation plan most familiar to Internet marketers. In a pay per sale method the marketer is paid for a product or service.
Pay Per Performance is transaction that occurs only after a specific group of criteria have been met, specifically, a product purchase. This is a favored mechanism of merchants because they contribute no compensation to the Internetmarketer until such time as an item has actually been sold. All costs of advertising and of “herding” customers to a merchant’s site are borne by the Internet and affiliate marketer. If there is no sale, the merchant suffers no expense and the marketer must endeavor to convince customers to buy in order to cover his/her expenses.
Pay Per Lead is a system that doesn”t depend upon a sale to initiate payment to a affiliate marketer. Instead, a marketer is paid when a customer or “lead” lands on the site and completes a questionnaire. This kind of compensation method is based on a simple fee and is the same whether 2 or 200 people are sent to the web site. The fee for each will not change.
Pay Per Click is a well defined system of payment within the Internet and affiliate marketing industry. It most commonly takes the form of the Google AdSense or the Yahoo Publisher Network programs. The pay per click program necessitates that a website(s) host the AdSense or Yahoo “ads” on any of its web pages. Essentially, the product the Internet marketer is selling is the “real estate” on his/her web site. This is a method of “monetizing” your web page and is usually an additional income and not the primary source of Internet marketer income.
Multi-tiered and Residual Payments are the most sought after compensation plans because the income is a porlonged, or better, a constant flow of money. The main difference is one of duration. In the residual plan, the commissions can basically be endless. Affiliates selling to affiliates are the most obvious model. Affiliate “A” sells to “affiliate “B.” Affiliate “A” gets a commission every time Affiliate “B” makes a purchase, but not only that, if affiliate “B” sells to “C” and “D,” affiliate “A” gets a commission from all three. There are a limited group of products that use this compensation model but they are usually highly lucrative.
Affiliate marketing programs promote, advertise, and sell products. The compensation plan is a component of the Internet and affiliate marketing program.
Now let’s get out there and hock your products