Is Affiliate Marketing Revenue Sharing?

 In Affiliate Marketing, Home

One of the most popular and undeniable methods of making  money online is the setting up of an affiliate marketing business. Anyone who is determined, resourceful, and willing to learn can become booming in affiliate marketing.

How can affiliate marketing result to earning money?

As a matter of fact firstly, the business of affiliate marketing can be described as a joint effort of two businesses. That is, affiliate marketing is essentially a relationship between two businesses in which, the common purpose is to enlarge visitor traffic. One business is called the Advertiser, and the other is called the Publisher or the Affiliate.

The financial relationship of the Advertiser and the Publisher is based on revenue sharing. The Advertiser will place ads in the website of the Publisher. These ads are links towards the website of the Advertiser. And when a visitor clicks on the link, the Advertiser will pay the Publisher. The payment or compensation given to the Publisher will be based on any of these arrangements.

Cost Per Click

In “cost per click” or CPC, the Advertiser has arranged to pay the Publisher or Affiliate each time a visitor ends up in the Advertiser’s website from the link in the Publisher’s website. What actually happens is that the Publisher has articles or products that have attracted Internet users. And while the Internet user is in the website of the Publisher, this Internet user will have knowledge of the existence of the Advertiser’s website.

It will be useful for you to find out that in the ads or banner of the Advertiser, there will be one or two sentences that will entice the Internet user to visit the Advertiser’s website. Certainly, the Advertiser may have several Publishers and it will have a system that will identify which Publisher has referred the visitor.

Cost Per Lead or Cost Per Action (CPA)

The gold rush of 2009.  In “cost per lead” or CPL, the visitor that was referred by the Publisher must sign-up or fill-up a form before the Publisher is entitled to a payment or compensation. When the visitor signs-up, he becomes a lead for the Advertiser to more target clients. Since a lead is more valuable than a plain visitor, the payment given to the Publisher for each lead is comparatively higher than the pay for each visitor.

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Cost Per Acquisition, The CPA second name.

In “cost per acquisition” or CPA as well, the visitor that was referred by the Publisher decides to acquire the products or services from the website of the Advertiser. As a matter of fact the visitor becomes a paying customer. When there is a paying customer, the Advertiser earns money. And when the Advertiser earns money, a part of it is shared with the Publisher in the form of a payment.

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