The Basic Principle Of Affiliate Marketing
With the huge growth in personal websites and blogs in the past few years, companies have found yet another venue for advertisement and promotion. Website owners likewise benefit from these arrangements, both monetarily and through increased traffic to their sites. This arrangement between companies and websites is known as affiliate marketing.
It comprises a revenue sharing program where merchants and website owners agree to work together. Profits are shared through the re-direction of a websites readers through links. There are three different types of this discipline in practice today, these are pay per sale, pay per click, and pay per lead.
Action based schemes. Pay per lead is probably the least used of the three types, but still has its place. This is when a reader clicks on affiliates' links and then signs up for something or registers with a merchants site. This arrangement is ideal for those sites which offer subscription services of some type or are simply looking to build up some type of consumer or outreach database.
Pay per click, is when the reader clicks on a specific link and is redirected to the merchants website. Each click earns the blogger/website owner a small profit. This amount is agreed upon by both parties and can be very minimal to sizeable, depending on the agreement.
Pay per lead marketing is likely the least common of the three. This type of scheme is when a reader clicks a link and then registers or signs up for something on a merchant site. This marketing practice is especially popular for sites that do not sell an actual product, but rather a service or subscription of some type as it is a great way to build up a customer base.
Earn a little extra. For many bloggers and website owners, this is an easy way to earn some money from their site without putting in much effort. There does not have to be any actual selling or promotion of any kind if it is not desired. All that is necessary is a link for readers to click on, where that link is placed and in what context is up to the site itself.
Merchants and companies benefit from this type of marketing because it is low cost, if not free, and does not require the overhead or costs of most other types of promotion and advertisement. They can promote themselves on a huge number of websites simply though text links. This practice can result in much greater brand and product recognition as well as promotion, additionally, bloggers and website owners benefit by getting more readers and increasing their potential to monetize their site.