If you do a cursory analysis on Google examining the search phrase Internet Marketing Programs you are likely to be educated 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 Internet Marketing Programs. More correctly they are systems of compensation to the marketer and a means of exchange of goods to the customer.
An Internet marketing system is: a structured plan representing a market in which a product(s) is identified and advertised, offered for sale, and includes an exchange device for transferring the product and the corresponding payment. In short, what you sell, how you sell it, and how you get paid is the Internet and affiliate marketing plan.
A plan of compensation is: a mechanism INSIDE an Internet and affiliate marketing program that facilitates the transference of cash or other monetary device for the exchange of products and/or services. In short, it s what gets the customer the product and you the money when the advertising has convinced the buyer that your market is valuable and the product(s) therein worth purchasing.
This having been said and suggested some correction of terminology, we should review the ways by which we get paid for our well conceived Internet marketing programs. While many would suggest that this is the complete point of the affiliate marketing, to get paid, I would like to suggest that that idea will not sell allot products nor endear you to your customer.
In review, an Affiliate Marketing Program consists of:
A product or products for sale
A product showcase website or other place to see the product
An advertising plan
You don t want to make a sale, you want gleeful motivated to return buyers so you can make MANY sales.
Pay Per Sale is the compensation method most familiar to Internet marketers. In a pay per sale method the marketer is compensated for a product or service.
Pay Per Performance is transaction that happens only after a specific group of criteria have been met, namely, a product purchase. This is a favored mechanism of merchants because they provide no money to the Internetmarketer until that time when an item has actually been sold. If there is no sale, the merchant incurs no expense and the marketer must continue to convince customers to buy in order to cover his/her costs.
Pay Per Lead is a method that does not depend upon a purchase to initiate payment to a Internet and affiliate marketer. Instead, a marketer is paid when a customer or lead lands on the site and fills out a questionnaire. The fee for each will not change. This method is most often used by insurance and finance companies and is not a common method in other venues of the affiliate marketing industry.
It most commonly occurs in the form of the Google AdSense or the Yahoo Publisher Network programs. The pay per click program necessitates 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 some of that fee is given to the web host. Basically, the product the affiliate marketer is selling is the real estate on his/her web site. This is a method of monetizing your web page and is usually an extra income and not the primary source of affiliate marketer income.
Multi tiered and Residual Payments are the most sought after compensation plans because the income is a porlonged, or better, a continuous stream of money. The primary difference is one of duration. In the residual plan, the payments can essentially be endless. There are a limited set of products that use this compensation model but they are quite often very lucrative.
Compensation programs provide a method of exchanging product for cash or other method of compensation. The compensation plan is a part of the Internet and affiliate marketing program.
Now let s get out there and sell your products
Author Resource:
Dean MAS is a 10 year veteran of internet and affiliate marketing. Much of his time is spent writing ebooks in support of his Internet marketing addiction. He also speaks and gives presentations. He is married and lives on the Eastern seaboard. http://myaffiliatestrategies.com/news
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