There are various variations prevailing in the field of affiliate marketing businesses. Therefore, being a new bie or a beginner one must be clear about the features that differentiate from on type of affiliate marketing program from another. It is the knowledge in these programs and how these programs work will lead a newly joined affiliate analyze their prospects in this field. Understanding in functionalities and payment models help in identifying which marketing program will be the most effective for a merchants’ business too. So let us find out what are these programs, how they differ from one another and how to identify which program can work better than other marketing schemes.

Diverse types of affiliate marketing schemes are prevalent. But, usually and broadly, all affiliate advertising programs classified into two – the Pay per click or PPC and Pay per performance or PPP.

The Pay Per Click – The PPC programs are the most sought after affiliate marketing programs amongst two of these. These programs are mainly sought after by small size affiliate based businesses. It is found out as the easiest too for these small entities to earn money and get control over their expenses on advertising campaigns. In such marketing types, the merchant is supposed to pay its affiliates as soon as any visitor enters to his site being referred by that affiliate. Suppose, a visitor visits a merchant’s site being driven by any ad campaign posted on an affiliate’s web page or website. Even if the visitor leaves his site without making any purchase, the merchant is liable to pay his affiliate because it is the click that’s what is counted in pay per click in affiliate marketing strategies. Commission rates of these PPC campaigns are smaller than other strategies and do not exceed more than one dollar per click.

The Pay Per Performance – PPP affiliate marketing strategy is liked by many merchants and affiliates looking for thick profit rates. In such affiliate marketing types, the merchant will pay his affiliates based upon their participation in conversion of leads. As a visitor referred by an affiliate makes some purchase from merchants’ websites or the cases, when the visitor generates leads, the affiliate is said to make some performance in pushing sales. Usually, the range of payments in PPP range up to 75 percent of the sales.

The, pay per performance (PPP) affiliate marketing strategies are further divided into pay per sales or PPS and pay per lead PPL.