Monday, November 9, 2009

Good Affiliate Marketing Tips – 3 Kind Of Affiliate Compensation Plan You Should Know

When you are selecting for an affiliate program to join, the most important thing that you will want to check is the ways that you will be paid. You will want to know whether you should be earning commissions whenever clicks on the link, purchase the product or more. In most of the affiliate program that are available on the internet, there are 3 most common kind of compensation plan that you should know.

The 1st plan is the pay per sale model. This means that you will only earn commission when your referral has purchased the product. The good thing about this plan is that most of the programs will offer high commissions for as high as 75%. The disadvantage is that you will need to do proper selling to your customers as they will need to purchase the product. You will want to promote membership product to your customers as you will continue to earn monthly commissions as long as your referrals pays for the membership product.

The 2nd kind is the pay per lead model. This is the model where you will be paid for every leads that you can generate for the merchant. Most merchant are willing to pay for the leads because they understand that they will be able to earn the money back from the backend marketing. This advantage of this model is that you can ask your referral to sign up for the merchant’s newsletter as most of the merchant will give something away for free. You will get good response from the visitors as they do not have to purchase the product and you will be able to earn commission.

The 3rd kind is the per pay click model. This is the model when you will be paid for every click that your visitors click on the advertisements on your website. You definitely do not want to place any advertisement on your squeeze page but you can put it on your own blog so that you can fully monetize from it. For this model to be effective, you will have to drive lots of traffic to your website as each click will not earn you much commission.

Here are the 3 different kinds of compensation plan that you should know if you are just starting out your affiliate marketing business. Choose one model that suits you and stay focus on it till you have achieved results.

Zack Lim is an internet affiliate marketer who owns He has helped hundreds of people to start their own affiliate marketing business.

He’s recently developed a free e-course showing you a step by step process for starting your own affiliate marketing business easier. To learn how to start your own affiliate marketing business without wasting your time and money, visit

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