The End All Guide to Affiliate Marketing and Making Money Online
Firstly, know that this article is not a comprehensive "welcome to affiliate marketing"
guide. I will not spend much time going over the basics, but will spotlight the actual methods
you need to make money - with a bit of pertinent background to help you understand the reasons
behind these methods. You beginners will find this information invaluable and stimulating.
You practiced marketers will find this information accurate and refreshing, while also discovering
some astonishing new ideas to employ in your everyday endeavors. So, let's continue.
Almost everyone that makes money on the internet (even the millionaires) do so through
affiliate marketing. Affiliate marketing is a means of promoting web businesses in which an
affiliate is rewarded for every visitor, subscriber, customer, and⁄or sale provided through
his⁄her efforts. Compensation or commission may be made based on a certain value for
each impression (CPM), click (Pay-per- click), registrant or new customer (Pay-per-lead) or
(Cost-per-Acquisition ⁄ CPA), sale (usually a percentage, pay per sale or revenue share),
or any combination of them.
In very short English; there are literally hundreds of thousands of affiliate programs
on the web featuring tens of millions of products ranging from magazine subscriptions to life
insurance and every conceivable thing in between. An affiliate is essentially a salesperson
whose job is to send people to a merchant's website. When a predetermined "action" or sale
is made, the affiliate is paid a commission. It's the same as being a salesperson in retail,
only online. I will teach you more about the actual application of affiliate marketing later
in this chapter.
Another important attribute of an affiliate program is its' compensation model. This
may have an impact on which advertisers you decide to join and how you go about promoting them.
It will surely have an impact on how much money you will make. Here is a breakdown of the various
compensation models that affiliate advertisers utilize.
Pay-per-impression (PPI) ⁄ Cost-per-thousand (CPM)
Cost-per-mil (mil⁄mille⁄M = Latin⁄Roman numeral for thousand) impressions.
Publisher gets from Advertiser $x.xx amount of money for every 1000 impressions (page views⁄displays)
of the ad. The Ad can be text , rich media, but in most cases, the Ad is a banner running across
the top, or down the side of a website.
Pay-per-click (PPC) ⁄ Cost-per-click (CPC)
Cost-per-click. Advertiser pays publisher $X.XX amount of money, every time a visitor
(potential prospect) clicks on the advertiser's ad; it is irrelevant (for the compensation)
how often an ad is displayed. Commission is only due when the Ad is clicked. The PPC model
is used by Google AdWords, Miva and other providers. These are the Ads that you see running
along-side search results and many web-pages out there.
Pay-per-lead (PPL) ⁄ Cost-per-action⁄acquisition (CPA) ⁄ Cost-per-lead
Cost-per-action (CPA). Cost-per-lead (CPL). Advertiser pays publisher $X.XX in
commission for every visitor that was referred by the publisher to the advertiser (web site)
and performs a desired action, such as filling out a form, creating an account or signing up
for a newsletter. This compensation model is very popular with online services from internet
service providers, cell phone providers, banks (loans, mortgages, credit cards) and subscription
Pay-per-sale (PPS) ⁄ Cost-per-sale (CPS)
Cost-per-sale (CPS). Advertiser pays the publisher a percentage (%) of the order
amount (sale) that was created by a customer who was referred by the publisher. This model
is by far the most common compensation model used by online retailers that have an affiliate
program. This form of compensation is also referred to as Revenue Sharing.
Pay-per-call (no abbreviation exists yet)
This is a new compensation model. No official abbreviation exists yet. Advertiser pays
publisher a $X.XX commission for phone calls received from potential prospects as response
to a specific publishers' ad. Recently developed call-tracking technology allows to create
a bridge between online and offline advertising. Pay-per-call advertising is still new and
in its infancy.