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V.K. Rajagopalan asked:

The benefits of affiliate marketing is more pronounced today than before. This is one of the main reason for the immense popularity of affiliate marketing programs among so many thousands of internet marketers.

Latest web technology has enabled the affiliate marketers to get their statistics and income figures the moment they make an affiliate sale. It is now possible to use companies like PayPal for payment and receipt processing. This has highly curtailed the time that an affiliate marketer needs to wait for his payments to be collected from the merchants.

Both the affiliates and the merchants have now realised that affiliate marketing is effective for both of them. The merchants perceive affiliate marketing as an opportunity to advertise their products at a much lesser cost. On the other hand, the affiliates see affiliate marketing as a uncomplicated way of earning profits online by doing something which they like most, and that is web publishing.

Just as the popularity of affiliate marketing has gone into overdrive, similarly the outlook of people has changed for the better about affiliate marketing. Affiliate marketing is no longer considered as a secondary method of marketing by the merchants, or as an additional income source by an affiliate marketer. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

We now need to analyze what type of affiliate marketing will work best for any person? Are there any differences in affiliate marketing programs? Are the paybacks from these programs the same? Which are those affiliate marketing programs that work better than the others?

There are actually varieties of affiliate marketing, and the types will depend on how you are going to classify them. The primary classification of affiliate marketing programs falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

1. Pay Per Click (PPC) – PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant’s site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

2. Pay Per Performance (PPP) – PPP affiliate marketing is well liked among merchants and is also the most rewarding type for the affiliates. In this type of affiliate program, the merchant pays the affiliate only when his referral converts into an action – that is whenever the visitor he has referred actually buys something from the merchant’s site or when the visitor becomes a lead. This means that the merchant saves a lot on his own direct marketing efforts. On the other hand, this type of affiliate marketing becomes financially most rewarding for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales. And, in the case of e-products or e-goods, the affiliate commission can go as high as 70 – 75% of the sale price.

Pay-per-performance affiliate marketing can further be classified into two types: pay-per-sales (PPS) and pay-per-lead (PPL). Both these are highly popular.

a) Pay Per Sale (PPS) – In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant’s site actually buys something from the merchant’s site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

b) Pay Per Lead (PPL) – The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type. Generally, the sales conversion rate is the highest in the case of PPL, because, the visitor is not required to purchase anything but only complete a non-financial transaction, like, filling up an application form, subscribing to a newsletter, etc.

Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant’s site.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made.

A) Single Tier – In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (i.e. PPS, PPL, and PPC) fall under the single-tier classification.

B) Two Tier – In two-tier affiliate marketing programs, the affiliates are not only paid for the direct traffic or sales that he brings to the merchant’s site, but also on every traffic or sales referred by other affiliates who joined as sub-affiliate of the above affiliate marketer.

C) Multi Tier – Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for more number of levels of affiliates in different tiers in the affiliate network.

D) Residual Income Affiliate Marketing – In this type, apart from the affiliate getting paid for every customer he has referred to the merchant’s site, the affiliate is also paid whenever the customer he has referred goes back to the merchant’s site and purchases another product. Commission for such type of affiliate marketing is based on either percentage of sales or based on fixed fee.

Every affiliate marketer finds that these different affiliate marketing methods work differently for each of them. For instance, multi tier affiliate marketing, also called Multi-Level Marketing (MLM) is a highly difficult type of internet marketing and it does not work for everyone. As a matter of fact, many legitimate marketers consider MLM as illegal or something which is undesirable.

An affiliate marketer has to try out different methods and decide which will work best for him or her. He/she should then concentrate on those affiliate marketing methods which are suitable for his/her style of internet marketing business.

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If you already have a website or want to get one then spending time learning what your website needs to have in order to increase online sales should be your primary step you take. In this article we are going to cover some major TOP 10 points on what your website should have to consistently drive online sales.

1. Get the attention through clear marketing messages – Your website should have a clear message about your products or business. Show your visitors the benefits they get if they choose your product or business. Make sure that you define your marketing messages clearly for all your critical audiences.

2. Make your visitors feel comfortable – Make sure that your visitors will feel comfortable on your website. Use nice and creative graphics with your content. Use your main business address on your contact page and not P.O. Boxes since it won’t make your business look very dependable. You should also have your phone number located on all of your pages on a visible spot. Your answering message should have the name of your business recorded on it. You are a professional right? Remember to always have your e-mail, phone number, or contact form easily accessible from all pages of your website so your visitors don’t have to struggle to get in touch with you. Another good idea is to provide FAQ page to give your visitors the extra confidence to buy without having to contact you.

3. Create a newsletter – Provide your visitors with a newsletter that they can easily subscribe to. This is your marketing tool that doesn’t cost you anything. It is something catchy that will grab their attention and make them want to sign up.

4. Include your specials – Make sure that you give your visitors good reasons to buy from you. When you tell your potential customer who’s just looking around that you will give them the best deal in town, and to call you back before they buy. I can guarantee that if you handled the communication good they will call you back before they make a buying decision. What you say to them will always be in the back of their mind. Now don’t think that you need to beat the price that they bring back to you. You can always include something extra special to the mix.

5. Keeping in touch with existing customers – Remember that your existing customer is more likely to buy from you again, or refer you to someone, than someone you find who in only interested in your product or business at the time. Remind your customers by phone, e-mail, or postcards about your website or business and let them know about the updates or specials that you have.

6. Create an online marketing campaign – Set some time aside every once in a while and keep looking for ways to promote your website. Establish new linking partners that will advertise your website on theirs. Write interesting and resourceful articles that can help other website owners to provide for their visitors. Establish your monthly budget and invest it in search engine marketing or good business related websites that will bring you quality visitors.

7. Improve you website graphics – Try to stay away from clip art images or something out of style because it won’t have much effect. Make your graphics unique and come up with nice and catchy advertising tag lines. If you need help, hire an agency that will help you come up with the appropriate marketing messages and design eye catching advertising pieces that will seize your visitors’ attention.

8. Perform a regular competitor and customer research – Continue doing research on your competitors and customers. Try to keep your website updated and competitive. After all, the website is your best educated and most knowledgeable salesman that works 24/7.

9. Customer is always right – Your customer is always right, even if they are not. It is important to acknowledge the comments or concerns your customers may have. This will allow you to improve your website in order to make future customers completely satisfied. After you have changes made, jump right back into selling again.

10. Choose a reliable web hosting – Don’t settle for less or judge the hosting by price. You need your website to be available to the world all day everyday. Please note that there is no such thing as “unlimited bandwidth” in web hosting. Any good network engineer or technician can explain why that is.

These 10 tips will help you understand how to increase your online sales. To finalize this article I just want to add two more very important things. Please do not put your picture on the home page. Your navigation of the website should be easy to follow and fool-proof. Don’t complicate things by providing too many options for the customers that will just get them lost. Now go sell.