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Unlike traditional advertising, affiliates are only paid when they deliver results. There are several different types of results that different programs will pay affiliates for:
Pay Per Sale: Merchants will pay based on the number of sales generated from the affiliate's links. This saves the merchant money because they only have to pay when they actually make a profit. (The LinkShare Affiliate Network, which combines the affiliate programs of hundreds of online vendors into one, primarily uses this method.)
Pay Per Lead: Similar to the pay-per-sale, in these programs an affiliate is paid whenever the visitor they referred to the merchant's site fills out an application or any similar form related to the business of the company. This type is most often used by insurance and finance companies.
Pay Per Click: The most popular type of affiliate marketing. Merchants pay affiliates every time a visitor is referred to the merchant's website by clicking one of the affiliate's banners or text links. This allows the affiliate to make money even if a sale is not made.
Pay Per Impression: A rare type of affiliate program where affiliates get paid simply for displaying a merchant's ad on their site whether it is clicked or not. Usually restricted to major, high-traffic sites.
Pop-Up Programs: Affiliates get paid for placing ads that display in a self-generating window.
Search Engine: Typically in this method, affiliates get paid when visitors use their site perform a search.
More about LinkShare and Affiliate Marketing.
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