The Different Types of Affiliate Marketing and How You Can Benefit from Them

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There are basically three types of affiliate marketing – Cost Per Action (CPA), Contextual advertising, and Revenue sharing.

The Cost Per Action (CPA):

which is sometimes referred to as Pay Per Action (PPA) is the type of programme where the advertiser negotiates with the publisher to pay certain amount of money for specified action which the publisher helps to initiate. This could be purchasing of items, submission of forms, trial of software, download of software or games, etc.

What this simply means is that the publisher (which in this case is you) would help to redirect visitors from his site to the advertiser’s site where an action is performed. These actions are the afore-mentioned and some others. Once the action is completed, the advertiser pays the publisher (web owner or blogger or you) the specific amount of money that was agreed on. In most cases there is a specific amount the advertiser decides to pay for a specific action. The higher the numbers of people who complete the action the higher the revenue you earn.

Contextual Advertising:

This is another type of affiliate marketing; it is a form of targeting advertising which is focused on the content of your website. What this simply means is that advertisement on your site is done strictly based on the subject or topic displayed on your site. Simply put, it is related to your niche. If you are dealing with software you are likely to get ads displaying software download, software installation, software programming, etc.

The advertisement is done by a special automated system that enables the advertiser to determine the content of your site, the geographical location, etc and then serve the ad that is best suited for the website. You are given a javascript code which you place on your site to display the image ads, flash ads, text links, banner ads, interstitial ads, pop unders, etc. When a visitor to your site clicks on the ad you earn some percentage of the advertisement revenue.

A good example of contextual advertisement is the Google Adsense which is served on most sites and blogs online. Once you open an Adsense account and it is approved, you generate the javascript code which you then place on your sidebars to display the advertiser’s ads. The ad is automatically served based on the keywords of your site or blog.

Revenue Sharing:

The third type of affiliate marketing is the revenue sharing, in which case the affiliates are allowed to join a site and create contents. In most cases the affiliates earn revenue from the ads placed on their contents.

You can actually earn much from any of the afore-mentioned affiliate marketing systems depending on several factors. Whatever revenue you earn depends on what you want, the traffic to your site, the position of ad placement on your site and other parameters. You have the choice to make as to the type of affiliate marketing programme to join.


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