There are many ways one can make money through affiliate marketing.
Primarily ways are :-
- Pay-Per-Sale (PPS) :- I can define it as "when a visitor buys a product or services through affiliate's link, the merchant pays a certain amount or a percentage for that sale.
- Pay-Per-Lead (PPL) :- In this affiliate program, when an affiliate sends a qualified lead to the merchant site through affiliate link, the merchant pays a flat fee for each lead.
Qualified Lead :- To be considered a qualified lead, the visitor had to give his/her contact informations.
Contact information includes Name, email ID, Phone number and address (in rare cases).
- Pay-Per-Click (PPC) :- When an affiliate gives ad space on his/her site to the program, then he/she can make a small amount of money from each click on the ad. The most popular pay-per-click programs are from Google's Adsense.
- Per-Per-Search :- When an affiliate puts a special search box (provided by merchant) on his/her website and whenever a visitor searches the web via this search box, the affiliate earns a few cents.
Yes, affiliate can earn residual commission because few merchants pay on subscriptions and monthly services like web hosting, but the commission % may be low.
In this type of program, affiliate has to sell the subscriptions only once, but he/she receives commissions whenever the customer pays monthly or yearly subscription fee.
- Single-Tier commissions :- When an affiliate gets a % or a fixed amount per sale.
- Two-Tier commission :- In 2-tier, affiliate gets commission on his/her own efforts+ efforts (sales) by his/her affiliate whom he/she refers. It is like team work. In 2-tier, if affiliate has good number of people in his/her team, he/she can make good amount of money even without doing his/her efforts.
What are cookies and how cookies decide long term commissions???
We can understand cookies as tiny programs given to a visitor's web browser when they click affiliate links. Through these the merchant track a customer back to affiliate.
Whenever the visitor returns to the merchant's site, these cookies information indentifies the affiliate. So for all future business from that customer, merchant pays to that affiliate.
For how long do the cookies last???
Cookies generally last for a few hours to few days, months or even years. After that period they expire and the affiliate could not earn for those cookies (customers).
Note :- Payments terms:-
Payment terms totally depends on merchant's will.So kindly read the agreement before signing up for any program.