Types Of Affiliate Programs

There are different types of affiliate programs. Understanding the differences between each type will help you decide which is best for you. Most people think all work the same and pay for the same things. Each type will pay you for something different.

Some will pay you per sale you generate, some will pay you per lead, and some will pay you per action. However good a program is you need to understand what type of program it is to make the most money from it.

CPA (Cost Per Action)

In CPA programs you get paid for certain actions. Actions you get paid for vary with each program. Actions can consists of several things and vary with each offer you promote. Every offer you choose to promote pays for something different.

With some CPA offers you get paid for giving away free stuff. The free stuff usually involves the customer having to give their name and address in order to recieve the free stuff you are given out. A popular CPA offer that is highly profitable is giving away free ringtones.

CPA programs have been become the most sought after affiliate programs online. Only a small amount of people qualify to promote CPA offers. Primary Ads which is the leader in cost per action approves 1 in every 60 people who apply. Everyone wants to get into this field.

Pay Per Click

Some pay up to $.20 and some pay as low as $.01 per click. Some will also pay you for a second click. A click that is made on their website. The second click is worth more in some cases or less depending on the program, product, etc.

Don't get that confused with pay per click programs that pay only for a second click. They will certainly pay for second clicks than other PPC programs, but in the long run you will make far less money because second clicks are rare.

Single Tier

Some single tier affiliate programs give commission on repeat purchases. This will result in passive income until the customers you referred quit buying products. That is the only way it is possible to create passive income with a single tier program.

Two Tier

Two tier affiliate programs allow affiliates to make money by referring customers and affiliates. Affiliates are much easier to refer than customers. It cost no money to join most programs.

If you can refer a large number of affiliates it could create a long term stream of passive residual income. After awhile you won't need to make sales because all the affiliates under you are making enough sales to replace the money you made referring customers yourself.

There is a drawback to two-tier programs. By recruiting new affiliates you are recruiting your own competition which might slow down your sales if you use pay per click ads to market. In most cases recruiting new affiliates increases profit.

Multi-Tier

Before signing up with a multi-tier program you need do some research. Do some google searches to see how others rate the program. They are closely related to pyramid schemes. In the past many have panned out to be scams.

Often there is a catch too. You might get paid 10 levels deep, but with each level the percentage decreases. It might look something like this 5% commission for first level then 1%, .5%, and so on for 10 levels. Even though it extends 10 levels down the commission is terrible.

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