Discover how to make money online with internet marketing, mobile marketing, affiliate marketing, and blog marketing!

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If you do a cursory review on Google covering the search phrase "affiliate marketing programs"
you are likely to be regaled on the following topics: pay per click, pay per sale, pay per
performance, pay per lead, single and multi-tiered payment plans, and residual income. While
fascinating, they are not affiliate marketing programs. More correctly they are plans of
compensation to the marketer and a means of exchange of goods.
So, what is the difference between an Affiliate Marketing Program and a plan of compensation?
An Affiliate Marketing Program is: a structured method, plan, or operation representing a market
and by which a product(s) is advertised, offered for sale, and includes an exchange mechanism for
transferring the product and the corresponding remuneration or payment. In short, what you sell,
how you sell it, and how you get paid is "the program."
A Plan of Compensation is: a process or mechanism WITHIN an affiliate marketing program that
facilitates the transference of cash or other monetary instrument for the exchange of products or
services. In short, it's what gets the customer the product and you the cash when the advertising
has convinced the customer that your market is valuable and the product(s) therein worth
purchasing.
In review, an Affiliate Marketing Program consists of:
1. A market of goods
--- Possibly a niche market
2. A product or products for sale
3. A product showcase-website or other "place" to see the product
4. An advertising strategy
5. A payment and product exchange plan
Having said this and offered some correction of terminology, we should cover the ways we get
paid for our well thought out affiliate marketing program. While some would argue that this is the
whole point of the exercise, to get paid, I would like to suggest that that perception will not sell
many products nor endear you to your customer.
You don't want to make a sale, you want happy motivated to return customers so you can make

2. many sales.
Pay Per Sale is the compensation method most familiar to Internet and affiliate marketers. In a pay
per sale method the marketer is paid for a product or service. Often this is a direct sale of a
product the marketer sells.
Pay Per Performance is transaction that happens only after a certain set of criteria have been met,
namely, a product sale. This is a favored mechanism by merchants because they provide no
compensation to the marketer until such time as a product has actually been made. All costs of
advertising and "herding" customers to a merchant's site are borne by the marketer. If there is no
purchase, the merchant incurs no cost and the marketers must continue to convince customers to
buy in order to cover his/her costs.
Pay Per Lead is a method that does not rely upon a sale to consummate payment to a marketer.
Instead, a marketer is paid when a customer or "lead" lands on the site and fills out a
questionnaire. This kind of payment method is based upon a fixed fee and is the same whether 2
or 200 people are referred to the website. This system is most often used by finance and
insurance companies and is not a common method in other venues of the Internet and affiliate
marketing industry
Pay Per Click is a well defined system of payment within the Internet and affiliate Marketing
industry. It most commonly takes the form of the Google AdSense or the Yahoo Publisher Network
programs. The pay per click system requires that a website(s) host the AdSense or Yahoo "ads"
on any of its web pages. When people reading the ads actually click through the ad to its target
web address, the advertiser is charged a fee and a portion of that fee is given to the web host.
Essentially, the product the marketer is selling is the "real estate" on his/her webpage. This is a
method of "monetizing" your website and is usually an additional income and not the primary
source of marketer income.
Multi-tiered and Residual payments are the most sought after compensation plans because the
income is an extended, or better, a continuous stream. The primary difference is one of duration.
In the multi-tiered plan you receive a commission for a sale and if the customer returns within a
specified time to buy again, you again get a commission. In the residual plan, the payments can
conceivably be endless. Affiliates selling to affiliates are the most obvious model. Affiliate "A" sells
to "affiliate "B." Affiliate "A" gets a commission every time Affiliate "B" makes a purchase, but not
only that, if affiliate "B" sells to "C" and "D," affiliate "A" gets a commission from all three. There
are a limited set of products that use this compensation plan but they are usually extremely
lucrative.
Internet and affiliate marketing programs promote, advertise, and sell products. Compensation
plans provide a means of exchanging product for cash or other instrument of compensation. The
compensation plan is a component of the Internet and affiliate marketing program.
Now let's get out there and hock your wares!
Dean is a 10 year veteran of Internet and Affiliate Marketing. Currently, he is maintaining and

3. further developing his own "Affiliate Marketing How to.." web portal. Understanding the difficulty of
getting a profitable affiliate marketing business off the ground, he has decided to devote
considerable effort and energy towards the novice marketer's cause. Dean has made a good living
writing about and selling other peoples products. He has experience in pay per click, pay per lead,
pay for performance, and multi-tiered marketing styles. In addition, Dean writes and produces
ebooks and contributes to the knowledge and article base of the Internet and affiliate marketing
industry.
Article Source:
http://EzineArticles.com/?expert=Dean_P_Mas
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For more on internet and affiliate marketing, check this out!
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