CPS Affiliate Marketing

Affiliate marketing can be a very profitable business model, but only if you know how the system works. In this article I'm going to explain some of the most important terms relating to affiliate marketing. There are many terms used in affiliate marketing programs. Hopefully by the time you've finished reading this article, you'll know the most common affiliate marketing terms.

Cost Per Action (CPA) is the most popular form of affiliate marketing. Affiliates refer to web publishers who offer CPA incentives to attract new affiliates. The incentive can be anything from free reports to banner ads. CPA offers are commonly found on pay-per-click search engines, where the publisher pays each time one of their advertisements is clicked on.

Cost Per Sale is a different affiliate marketing program, and it is similar to CPA. However, when a publisher offers a CPS program, they do not receive any payment until their offers are fulfilled. When a visitor clicks on the affiliate marketer's ad, the publisher then pays the visitor. The difference between CPA and CPS is that the advertiser only pays when their customer buys something. CPS programs payout when actual sales are received. Because this type of program has a much higher turn-over rate, many affiliate marketing programs offer CPS plans with generous commission checks.

One of the most important affiliate marketing terms to understand is "performance based marketing". This term is pretty self explanatory, but let me give you a quick explanation. Performance based marketing means that the advertiser only pays the affiliate if their customer has or obtains a specified action, such as purchase or download. For example, a publisher may run a CPA program that only pays the affiliate if they produce five sales. If they do not produce these sales, the advertiser does not pay the affiliate.

The most common performance-based marketing plan in use today is an affiliate network. An affiliate network is simply a website that contains links to thousands of affiliate websites. The affiliate marketer links their site to the affiliate network's site, which in turn has its own affiliate link at the bottom of the page.

Some of the major differences between cost per action and cost per sale affiliate marketing plans are the types of actions the advertiser wants their customer to take. Cost per Action (CPA) is very popular because customers are able to do one thing - purchase a product or service. A CPA plan pays the advertiser only if a specific action occurs. A CPS plan pays the affiliate only if the customer purchases a certain amount of information from the advertiser's website. Affiliate networks may offer CPA, CPS or both types of plans.

Another type of affiliate marketing plan is known as a PPC or pay per click plan. This type of plan is also very popular. Pay per click advertisers can run PPC ads on thousands of websites for just pennies each time one is clicked. Each time an advertiser runs a PPC ad, they have to pay the host site for a predetermined amount of money.

As you can see, the world of affiliate marketing can be quite interesting. While the CPA and CPS plan to offer many advantages to merchants, the affiliate marketing program is perfect for online retailers who need a way to attract new customers without the cost of advertisements. Online retailers can create their own affiliate marketing program and can make money from any number of products, as long as they are profitable. So whether you want to sell sports equipment, movie DVDs, or electronics, e-commerce has developed into an incredibly useful e-commerce tool for both sellers and buyers. In fact, e-commerce is one of the fastest growing internet business tools, today.