People new to affiliate marketing quickly discover that there is more to making money online than just adding affiliate links to their websites. The payment model and structure used by an affiliate program can have a dramatic effect on how much you earn through your affiliate marketing efforts. Each payment model has its own strengths and weakness, for both merchants and website publishers.
One of the most common payment structures used by affiliate programs is the pay-per-sale (PPC) model. Before you choose an affiliate program, you should learn more about this pay structure as well as the potential advantages and disadvantages of using participating in this type of affiliate program.
What is a Pay-Per-Sale Affiliate Program?
Pay-per-sale is a marketing model in which the advertiser or merchant only pays an affiliate when a successful sale is made. Unlike the pay-per-click (PPC) model, which pays every time a user clicks an affiliate links, pay-per-sale requires additional action by the user. By only paying for actual sales, online businesses are able to better manage advertising costs and generate more revenue and profits.
While online merchants tend to prefer this model, it is the least preferred by affiliate marketers. Pay-per-sale affiliate programs require to you actually inspire readers to purchase an item, not just click on an affiliate link. This makes the affiliate marketing process a bit more difficult, but there are still plenty of opportunities for success. By choosing the programs that offer products your readers want, you can take advantage of the potential benefits of pay-per-sale programs.
Advantages of Pay-Per-Sale Affiliate Programs
There are a number of advantages of using a pay-per-sale affiliate program. Online retailers like this model because it leads to additional sales without costing them money for clicks that do not lead to an actual purchase. Advertisers are also relieved of the worry of paying for illegitimate ad clicks, because all payments are based solely on successful sales.
While pay-per-sale affiliate programs make affiliate marketing a bit trickier, they can also be extremely rewarding to savvy online marketers. If you have a content-rich website and a loyal reader base, you might have excellent luck with pay-per-sale programs. Popular affiliate programs including the Amazon Associates program are based on this model, paying a commission based on every sale made through an affiliate link. By effectively converting link clicks to sales, you can generate a significant income through pay-per-sale affiliate links.
Disadvantages of Pay-Per-Sale Affiliate Programs
The obvious disadvantage of the pay-per-sale model is that converting clicks to sales is not always as easy as it sounds. Online shoppers are becoming increasingly discriminating, so selling products is tougher now than is was in the past. If your website does not have a niche focus or a great deal of site traffic, succeeding with pay-per-sale programs can be exceedingly difficult.
Tips for Succeeding with Pay-Per-Sale Programs
1. Offer excellent consumer advice, including product reviews and shopping guides.
2. Choose only products that are in high demand and that you know will be great sellers.
3. Join affiliate programs that offer tracking tools, great promotional features, and a track record of successful online sales.