Affiliate marketing is a legitimate way to make money online which is used by thousands of people to make money working from home. On a very basic level affiliate marketing is selling, advertising and promoting a product or a service for a merchant. There are different types of affiliate marketing systems.
1) Pay per sale
This method basically requires an affiliate to market and sell products for his clients. The products may be of two types:
• Virtual products like eBooks, software etc.
• Real products like TV, cars etc.
The earnings in this method depends on the product and the number of sales you have made. Each visitor to your site will be having a tracking ID; if the visitor makes a purchase you will receive a commission.
2) Pay per click
Here the individuals are paid depending on the number of clicks his website has generated for the owner. The website owners are called publishers and they have to host ads on their website. Advertisements are placed on the affiliates website and whenever this ad is clicked the affiliate earns a certain amount. PPC requires visitors to click on the ad for the merchant to be charge; IP tracking is used to ensure that clicks have been made by different individuals and not the same person.
3) Pay per link
Affiliate places links of the merchant's products on his or her website. The owners pay according to number of links that you have placed and also on the number of traffic it is generating.
4) Pay per view
The merchant is charged on the number of impressions that he gets from the affiliate or publisher's website. The term used here is called CPM or called 'cost per thousand impressions'.
5) Pay per sign up
The number of visitor who will register at the merchant's site or for his offer after being redirected from your website is considered as 'sign ups'. For each sign up that your website has provided, you will be paid.
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