Tuesday, June 12, 2007

Affiliate Program Types - Which One Would You Go For?

There are various affiliate programs, each offering their own advantages and disadvantages. Commission-based Affiliate Programs are the most commonly used affiliate program. Being mostly pay per sale these pay a predetermined commission on the sales of any products or services. At times some such programs also tend to offer certain incentives and increased commission by offering various gifts.

The Flat-fee Affiliate Program includes pay per lead and pay per sale programs. Although these are comparatively less popular however many of these programs tend to operate on a flat-fee base. In such flat-fee programs the referral pays a certain pre-determined amount for each visitor's purchase. Generally it operates on the per-customer or per order basis depending largely on the products and services.

In pay per Sale Affiliate Programs the referral gets paid only when the visitors purchases and pays for the product or services. Most businesses like those of insurance, loans, mortgages etc operate on the pay per Lead basis. In this the qualifying lead earns you a referral fee. The criteria for such affiliate program are different from that of the pay per sale.

Pay per Click Affiliate Programs are also known as click-through programs and these pay a relatively small amount as compared to the other affiliate programs. The payments are made on the per visitor basis. Such programs tend to give you larger earnings depending in the constraint on the click through as sometimes various websites also pay on the second click basis. Business owners need to be careful while signing up for such programs and should always read the fine prints and policies carefully.

Single-tire Affiliate Program have a more simple and straightforward structure. Most such programs are flat-fee and tend to pay on direct transactions. Suitable for most businesses, this program rewards on the traffic you send to the target website.

Two-tier Affiliate Programs offer double rewards for affiliates. First being on the transactions generated by affiliates and the second is the amount of affiliates you bring for the target website. Such programs can either be based on the flat-fee structure or are commission based. Good for affiliates who can generate other productive referrals or affiliates for the target website.

Multi-tier Affiliate Program operates on the basis of the 'deep level' earning. If the affiliate you sign up, signs up another affiliate who in turn signs up another then you get the percentage of all these affiliate's earnings. These programs are not very common.

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