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Common Affiliate Program Terminology

What Is An Affiliate Program?
What is Pay Per Sale?
What is a Bounty?
What is Pay per Click?
What are Two-Tier Programs?
What is Pay Per Lead?
What is Multi-Level Marketing?
What is a Forced Matrix Program?
What are the Best Affiliate Programs?


What Is An Affiliate Program?
An affiliate program is a method of rewarding individuals for sending web surfers to a particular website. Affiliate Programs are also known as associate, commission, referral, bounty and partner programs. Affiliate programs let your sell products for popular online merchants, you will be paid a set amount of money per click or per lead or a commission as a percentage of a purchase transaction, depending on the program. There are several different types of affiliate programs as discribed below.

Pay Per Sale
You get paid a commission for each sale you generate. If you refer a visitor to the merchant's site and s/he makes a purchase, you get a percentage of the sale as commission. Depending on the merchant, the commission may be for that purchase only, for all purchases that customer makes within a fixed period of time (usually six months to one year), or for all the purchases that customer makes in his or her lifetime.

Bounty
You get a one-time bounty payment for the customer you referred. You will not get commission on any future purchases that customer makes. Usually, companies pay a bounty of $10-$20 per customer.

Pay Per Click
You get paid for every visitor you send to the online merchant through a banner or text link, regardless of whether or not a sale is made. Usually, companies pay $0.05 - $0.10 per click, per visitor.

Two-Tier Programs
You get commission on direct sales that you generate, plus you get commission on sales generated by affiliates that you recruit. Companies typically pay 15% commission for direct sales and 5% for sales generated by the affiliates you recruit.

Pay Per Lead
You get paid a one-time fee for generating a lead for the merchant. Similar to a bounty program, you usually earn $2-$5 if the visitor you referred fills out a questionnaire or an application.

Multi-level Marketing
These affiliate programs pay on a multi-level basis. Ussually 4 or 5 levels. This means that everyone that you refer goes on level 1. Everyone that your level one reffers goes on your level 2 and so forth. Through this multiplication process you could be earning money from thousands of refferals.

Forced Matrix Affiliate Programs
A forced matrix program happens when each level of a multi-level affiliate program has a limit put on it. This helps a company grow faster. A 5x5 forced matrix program would only allow 5 refferals on your first level, and the sixth refferal would then go onto your second level, the first level of your first 5 refferals. This works really well; and creates huge downlines quickly. I joined one such program and in 2 days I recieved 25 refferals just from the spill over of my sponser.

Downline Spill Over
Downline spill over happens when people you reffer spill over to your next level in a forced matrix affiliate program.

What is the Best affiliate Program?
The best affiliate program you can find will be one that fits into the content of your site. Try to find affiliate programs that sell or provide products that would interest someone that visits your type of website.

 

 
 

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