Although affiliate partnerships are a relatively simple concept – you recommend your affiliate’s product to a reader on your blog, for example, they buy it, you get paid – there’s still a bit more to it than meets the eye.
Once you partner with a brand, you receive a unique affiliate link that leads to one of their pages (it can be the brand’s homepage, landing page, product page, or anything in between). You’ll recognize the link because of the “ref=” embedded in the URL (“ref=” meaning referrer).
This link is critical as it allows the brand (or the affiliate network) to recognize it as yours, and track it. Without it, there’d be no way to see which sales were generated by you, meaning there’d be no way to calculate your earnings. So, always make sure that you’re using the correct link.
You can add the link to any online channel that you have, instructing your audiences to follow it if they want to make a purchase. Once they click on your link, head to the brand’s page, and make a purchase, you receive a part of the profits.
Depending on the affiliate program, you could get paid a percentage of the sale or receive a flat fee for every new customer that a brand gets through your referral.
Different ways that affiliate programs pay
As an affiliate partner, you should be able to accept payments via bank transfers, services like PayPal, and even checks. However, regardless of how they pay you, brands and affiliate networks will use one of the following payment models.
PPL programs
Generating quality leads is often one of the ultimate goals of any company, so it’s not surprising that many are willing to pay a pretty penny for some assistance in this area. Therefore, pay-per-lead (PPL) affiliate programs are the most common ones that you’ll come across.
Instead of trying to sell a product or service, your job as a PPL affiliate marketer would be to get your audiences to perform an action that would help the brand to generate leads. What that “action” is, depends entirely on the company that you’re working with – you might have to get your audience to subscribe to a newsletter, download a file, fill out a contact form, sign up for a free trial, or contact the company for a quote.
You can expect an average compensation of between $2 and $20 per lead that you help to generate. However, if you have large audiences and enjoy an excellent reputation among them, many brands could be willing to pay much more for your services.
PPC programs
Pay-per-click (PPC) programs are the least lucrative of the bunch, but they also require the least effort on your part. Just like any PPC marketing campaign, your goal is simply to engage your audiences and get them to click through to the brand’s site. They don’t have to purchase anything, subscribe to things, or perform a task. They just have to click through.
You’ll receive compensation based on the increase in the brand’s web traffic. However, don’t expect to make millions from this type of affiliate marketing alone. Most companies will pay no more than a few cents per click – unless you’re working with someone in a very niche market.
With PPC, you won’t be able to earn quite as much as if you started an eCommerce business yourself. Still, since all you have to do is add a single link or place a small ad by your post, the PPC affiliate program can be a nice way to supplement your main income.
PPS programs
Pay-per-sale (PPS) programs are the holy grail of affiliate marketing. They can completely overtake your primary income and add quite a few zeroes to your bank account when done correctly.
As the name would suggest, this program pays you money for each sale that you help make. Every time a member of your audience uses your affiliate link to buy something, you’ll earn a profit. In most instances, PPS programs offer you a percentage of the sale (which can be anything from 5% to 60%). You might also encounter programs that offer a flat rate, but they’re not nearly as common.
To maximize your earnings through PPS programs, you’ll first want to develop a relationship with your audience. If they trust you and look to you for product/service recommendations, you should have no problem making money through your affiliate program. If, however, your audience isn’t as trusting as you’d like, you’d be better off joining a PPL or PPC program.
Joining an affiliate program can be a lucrative journey. Keep in mind that you’ll need to perfect your site/blog/social media presence, gather audiences, and build a reputation before you start seeing significant changes in your bank account. However, once you’ve put the time and effort into it, you’ll find affiliate marketing to be a very profitable endeavor.