Rxpaola1925's Blog

March 13, 2010

What is the program type? (my class 3)

Filed under: my BUS.IT 5 class — rxpaola1925 @ 8:16 am

There are essentially three types of affiliate programs: pay-per-sale, pay-per-lead, and payper-click.

Pay Per Sale or PPS (Sometimes referred to as Cost per Sale or CPS) is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement. It is a variant of the CPA (Cost per action) model where the advertiser pays the publisher/website only and in proportion to the number of actions committed by the readers or visitors to the website. In many cases it’s not practical to track all the sales generated by an advertisement, however it is more easily tracked for full online transactions, such as for selling songs directly on the internet. Unique identifiers, which can be stored in cookies or included in the URL, are used to track the movement of the prospective buyer to ensure that all such sales are attributed to the advertisement in question.

Pay-Per-Lead programs, you earn a set amount whenever your customer fills out a survey or requests a quote or some information

Pay Per Click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.

As Pay-Per-Lead and Pay-Per-Click programs require huge volumes of traffic to generate serious revenue,  Pay-Per-Sale programs is much preferable because they are performance based.

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