A big fat paycheck.
How does that sound? Good, right? That's what you're going to get when you sign on with the busy cyber streets of affiliate marketing that is surging through the internet today.
This might sound new to you but who cares? The important thing is now that you know it, it's time to show the money.
Payment terms in affiliate marketing are not complicated but it's considered a serious matter.
Well, money is always a serious matter.
Point is, to earn much you have to put your wits to the test.
If you are new in the affiliate business, you have to be knowledgeable of the terms in being paid.
Besides, this is what all your work is for isn't it? Basically, there are two methods of compensation in an affiliate marketing sense - commission distribution.
Here, you'll know how you are paid and how many percentages are given to your efforts.
The first compensation method is known as predominant compensation and the second method is diminished compensation.
Compensation method A - Predominant What you need to know about predominant compensation is that 80% of programs in affiliate marketing use revenue sharing or is also known as CPS (cost per sale).
This is the moment wherein affiliates are paid for their generated sale.
The 19% is used as the CPA (cost per action) wherein affiliates are paid because of their actions.
The 1% that remains is used in other methods like CPC (cost per click) or CPM (cost per mile).
Compensation method B - Diminished Traditionally, the remaining 1% of the entire revenue that comes from pay-per-click and pay-per-impression is far less and totally negligible.
In fact, CPC and CPM are still used heavily in paid search and display advertising.
The difference between CPM and PPC is that in CPM (cost per mile) it requires the publisher to load the advertisements in his website and array it to be shown to the visitors of the publisher's site.
In this way, you get a commission instantly.
PPC (pay-per-click), on the other hand, requires more than clicking for the profits to be converted into commissions because here, you persuade the visitors to get "linked" to the company's website.
Your job ends there.
But due to certain anomalies regarding CPC/PPC, it soon diminished.
Issues are similar to what search engines are presently facing.
Contextual advertising is not included in this kind of statistic.
Furthermore, it is still vague if contextual advertising can be considered as a kind of affiliate marketing.
Cost per action vs.
Cost per mile In CPC or CPA, commission is easier to earn because all the affiliate has to do is to make the visitor click the site they feature.
That's it.
It doesn't matter if the customer is really interested to the product the advertiser has for as long as visitors click on the ad.
Upon clicking, the publisher has already earned something.
The risk is left on the part of the advertiser whether the visitor will make that purchase or not, still the advertiser has to pay the publisher.
In cases of CPA and CPS, there is something more than clicking and browsing.
It is the publisher's responsibility to convert the customer and make the best traffic routing it to the advertiser, increasing the chance of making a big conversion.
Whatever loss and risk is shared by both advertiser and affiliate, it is still in the affiliate's part to decide which method is best with regards to internet affiliate marketing compensation.