Affiliate Programs are usually categorized according to their mode of payment. The categories of affiliate programs are:

• Pay-Per-Sale
  • Flat Fee
  • Percentage of Sales
• Pay-Per-Lead
• Pay-Per-Click
• Pay-Per-Impression

or any combination of these.

• Pay-per-Sale (Cost-per-Sale): In this arrangement the merchant pays the affiliate when the affiliate sends them a customer who completes a purchase. Some merchant web sites pay the affiliate a fixed commission per sale, others may pay some type of sliding commission.

• Pay-per-Lead (Cost-per-Lead): These programs pay their affiliates based on the number of visitors who sign-up, register or complete a form on the merchant website.

• Pay-per-Click (Cost-per-Click): In this arrangement the merchant pays the affiliate based on the number of visitors the affiliate directs to the merchant site. Visitors don't have to buy anything, they just have to visit the merchant site.

• Pay-per-Impression (Pay-per-View): These programs pay affiliates based only on the number of visitors who see the merchants banner ad. Normally this type of arrangement is not structured as an affiliate program, but simply as a traditional advertising program.

Variations of typical affiliate programs include

• Two-tier Affiliate Programs: These affiliate programs have a structure similar to multi-level or network marketing organizations such as Amway. The affiliate profits through both commission sales and sales recruitment. In addition to receiving commissions based on sales, clicks or leads from their own site, affiliates in these programs also receive a commission based on the activity of affiliate sites they refer to the merchant site.

• Residual Affiliate Programs: Affiliates in these programs can keep making money from visitors they send to the merchant site for as long as the visitor continues to purchase goods or services from the merchant site. Many online merchants who receive regular payments from their customers (such as monthly service fees) run this sort of affiliate program.

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