Home Affiliate marketing How does an affiliate makes money? Three important Affiliate marketing terms explained.
Affiliate marketing is one of the ways people are making money online. There are three major ways by which an affiliate can make money. In this post we will meet three important terms so far as online marketing is concern. Even though we will be using them on affiliate marketing ,there are very important as you will meet them in other programs. Understanding them will also help you in choosing the best affiliate programs among the thousands available online. It is important to understand how you will make money as an affiliate. Affiliates can make money in one of the following ways:
Cost Per Per Sale or Cost per Acquisition (CPA)
As the name goes, you make money when a customer makes a purchase from an advertiser (merchant) website through your affiliate link. The amount you make here depends on the number of sales you make. You should be able to drive traffic to the link and make conversions. You are thus being paid per sale.
Cost Per Lead (CPL)
This is a method where advertisers need certain task to be done on their websites commonly referred to as a lead. Affiliates make money only when a visitor that was referred to a merchant website is able to perform a require action excluding sales. The advertiser pays the affiliate based on conversion of leads, such as a file or software download, completion of a sign-up form for a newsletter, trial offer sign-up, or other desired action. The more the conversions the more the cash in you affiliate account.
Cost Per Click (CPC)
By this method, advertisers decide on how much they will pay per click. Affiliates get their links, display them on their websites or promote them using other means . Such programs require high tracking technology to detect fake clicks. Products are usually displayed on banners. You have to do your job in driving traffic, never use any illegal means to get traffic. This will cause serious damages to your dream as an affiliate marketer. Of course you don’t want to leave with broken dreams!!
So that was it. We got other ways, but the three above are the major and ‘’must know’’ in affiliate marketing. You will also meet these terms when you want to advertise for an advertising network like Google Adwords. If you have gone this far into this chapter, then it means you are determine in making a second income source online and why not be a boss one day? ALSO READ: HOW TO MAKE MONEY IN AFFILIATE MARKETING AS AN INDIVIDUAL