So let us talk about the different types of performance marketing programs available:
Pay per Lead/Pay per Action: This is where the merchant/advertiser pays you based on the number of valid signups or leads you generate through a form. It can be as little as a zip code and name or as much as full information – name, address, phone and other contact information. These usually pay as little as $2.00 up to $50.00 a lead. However you must be careful with this type of program and read the fine print in the affiliate agreement as the merchant/advertiser determines what it considers a valid lead and how. There may also be caps on how many leads the merchant will accept per week, month or campaign. This means after they fill their quota, they won’t pay for any other leads.
Cost per Sale: You will earn a commission on every sale that comes through your links to the merchant/advertiser’s site. The great thing about this type of deal is you don’t ship anything, there is no support you have to provide to customers and no inventory. This is also the most common type of affiliate program.
Cost per Million: This is a little misleading as it is actually cost per 1,000 impressions you deliver on your website. Unless you have a ton of traffic it is difficult to make good money on these types of arrangements.
Cost per Click: Typically this would be Google AdSense or Bing/Yahoo publisher ads. This is where you are paid based on the clicks generated through ads placed on your site. The payment is based on the value of the Ad and their keyword value. Some higher priced keywords can generate a lot of income for you and the lower priced keywords will give you modest returns.
Pay per Call: Instead of paying for an email lead the merchant gives you a unique 800 number or extension and sets a minimum time the call must be connected to be considered a valid call or a completed sale. You are paid a flat fee per call you generate for them. You can find programs like this in most major affiliate networks.