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Introduction to Affiliate Marketing - Part 1/2
Home :: Business :: Affiliate Programs
By: Carsten Cumbrowski Email Article
Word Count: 1370 Digg it | Del.icio.us it | Google it | StumbleUpon it

  

Yahoo's Version of AdSense called Yahoo! Publisher Network was launched (beta) in 2005. Microsoft is also working on their own Version of AdSense which is expected to be launched (beta) in 2006.

Search Engine Marketing (SEM)

Classic PPC Search Engine Marketing (Cost-Per-Click (CPC) advertising) is not Affiliate Marketing. It is an entirely different type of Internet Marketing and only has some technical details in common with old PPC/CPC Affiliate Marketing.

Ads are primarily displayed at the Search Engine Search Results Pages (SERPs) next to organic, free, Search Results. Contextual Advertising introduced with Google AdSense is also not Affiliate Marketing since no direct Partnership between the Advertiser who creates and pays for the Ads and the Publisher who displays the Ads on his Website.

This type of Marketing is generally referred to as Search Engine Marketing (SEM) and is often and wrongly mixed up and confused with Search Engine Optimization (SEO) which is about improving the ranking of a Site in the organic, free, SERPs at major Search Engines via technical means and deep understanding of the complicated ranking algorithms used by modern Search Engines.

Pay-Per-Call

This is a new compensation model. No official abbreviation exist yet. Advertiser pays publisher a flat $x.xx amount in commission for phone calls received from potential prospects as response to a specific publisher Ad. Recently developed call-tracking technology allows to create a bridge between online and offline Advertising. Pay-Per-Call Advertising is still new and in it's infancy.

Pay-Per-Call Advertising is neither Search Engine Marketing (SEM) nor Affiliate Marketing. It is expected to become the 4th major type of Internet Marketing next to Affiliate Marketing, Search Engine Marketing and Search Engine Optimization within the next years.

The Affiliate Marketing shifted almost entirely to the Pay-Per-Lead (CPA or CPL) and Pay-Per-Sale Model (CPS) which is also known as Performance Marketing. The paid commission is usually a percentage of the referred sales or a flat dollar amount.

The Pay-Per-Lead (CPA or CPL) Model

Cost-Per-Action or Cost-Per-Acquisition (CPA), Cost-per-Lead (CPL). The Advertiser pays the Publisher a flat $x.xx amount in commission if a referred visitor performs a specific action on the Advertisers Site. It could be Actions like filling out a Form, Signing up for a Newsletter or Creating an Account.

The CPA Model is very popular with Online Services like Credit Card Providers, Insurance Services, DVD and Video Game Rental Services and Loans and Mortgages. Due to the usual high flat commission amount is the CPA very attractive for PPC Affiliates that do not have a permanent Website and an established User Base.

Before you consider the CPA Model for you problem, make sure to have mechanisms in place to validate the quality of referred leads. Your program will be vulnerable to become a victim of fraud, affiliates that generate tons of "fake" leads if you do not have anything in place to verify the quality of the produced leads.

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Carsten Cumbrowski operateds the Internet Marketing and Web Development Resources Portal Cumbrowski.com. For Affiliate Marketing Resources visit http://www.cumbrowski.com/CarstenC/affiliatemarketing.asp . If you are new to Affiliate Marketing viist http://www.cumbrowski.com/CarstenC/affiliatemarketing_training-courses.asp first.

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