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Posted on November 4, 2009 by (Dean MAS|D. MAS|D.P. Mas} | Posted under Internet Marketing
Affiliate Marketing and Compensation
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If you do a cursory review on Google examining the search phrase "Internet Marketing Systems" you are likely to be regaled 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 interesting, they AREN'T Internet and Affiliate Marketing Systems. More correctly they are systems of compensation to the marketer and a method of exchange of goods to the customer. So, what is the deviation between an Internet and affiliatemarketing program and a system of compensation? An Internet marketing system is: a structured method representing a market in which a product(s) is found and advertised, offered for purchase, and includes an exchange mechanism for transferring the product and the corresponding remuneration. In short, what you sell, how you sell it, and how you get paid is the affiliate marketing program." A plan of compensation is: a process INSIDE an affiliate marketing program that facilitates the transfer of cash or other monetary instrument for the exchange of products and/or services. In short, it's what gets the customer the good and you the cash when the advertising has convinced the buyer that your market is useful and the product(s) therein worth buying. A market of goods A product display-website or other "place" to see the product An advertising plan You don't want to make a sale, you want gleeful interested to return customers so you can consumate SEVERAL sales. Pay Per Sale is the compensation method most familiar to Affiliate marketers. In a pay per sale method the marketer is paid for a product or service. Often this is a direct sale of a product the marketer offers for sale. Pay Per Performance is transaction that occurs after a specific set of criteria have been met, namely, a product purchase. This is a favorite device of merchants because they contribute no money to the Internetmarketer until such time as an item has actually been sold. If there is no sale, the merchant sustained no expense and the marketer must endeavor to convince customers to buy in order to cover his/her costs. Instead, a marketer is paid when a customer or "lead" lands on the site and completes a form. This kind of compensation method is based upon a simple fee and is the same whether 2 or 200 people are referred to the web site. The fee for each will not very. This method is most often used by insurance and finance companies and is not a common method in other venues of the Internet marketing industry. Pay Per Click is a well defined plan of payment within the Internet marketing industry. When people reviewing the ads actually click through the ad to its target web address, the advertiser is charged a fee and a portion 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. Multi-tiered and Residual Payments are the most sought after compensation plans because the income is an extended, or better, a continuous flow of cash. The primary difference is duration. In the multi-tiered plan, you receive a commission for a purchase and if the buyer returns within a specified time to buy once more, you again get paid once more. In the residual plan, the commissions can essentially be endless. Affiliates selling to affiliates are the most obvious model. There are a limited series of products that utilize this compensation plan however, they are quite often extremely lucrative. Internet marketing programs promote, advertise, and sell products. The compensation plan is a peice of the Internet and affiliate marketing program. Now let's get out there and hock your stuff About The Author: 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. Please visit his affiliate training Webspace |
Tags: AFFILIATE MARKETING, INTERNET MARKETING, INTERNET AND AFFILIATE MARKETING, MAKING MONEY
