If you are the owner or the moderator of a site that has substantial traffic, you can use this to your advantage and generate revenue. Affiliate marketing program is a system where you offer to advertise the products or services of whoever you affiliate yourself with. Depending on the agreement that you made with your affiliate, you will be paid a commission. A lot of people have used the affiliate marketing program to generate a lot of revenue.

The type of ads that you are required to display depends on whether you are taking the decision or you let the affiliate you are associated with dictate the terms. If you have a website with excellent traffic, you have a good chance of earning substantial sums of money through affiliate marketing.

Banner ads and text ads

Usually, the advertisements displayed on your site will be banner ads or text ads. Of course, you will have to make the provision for displaying these ads on your website, in the source code. You might have to contact your web developer for this. All these ads will have a hyperlink to the affiliate site. When a user clicks on the ad, he/she will be redirected to the affiliate’s website

Revenue calculation in affiliate marketing

There are three main ways in which revenue is given in affiliate marketing. They are Pay per Click, Pay per Lead and Pay per Sale.

Pay Per Click: As the name suggests, you will get paid when a visitor to your site clicks on the advertisement and visits the advertiser’s site. You might get the impression that this is the most lucrative option as you will be paid every time someone clicks on the links on your site. But the truth is that there are a number of factors on which PPC revenue depends, the most prominent of which is the bid price. That is the reason why earning a substantial revenue in PPC marketing needs some experience and skill.

Pay Per Lead: If the redirect from your site to the advertisers’ manages to generate a lead, like a contact, email subscription or file downloads, you will be paid a commission. This is by far the most lucrative revenue model in affiliate marketing.

Pay Per Sale: In this revenue model, you will be paid only if the redirect from the advertisement in your site manages to generate a sale. Pay per Sale manages to generate bulk revenues in affiliate marketing.

Affiliate marketing is a slow but lucrative business proposition. The key is to ensure that you remain committed to increasing the rankings of your web page and have patience. The revenue will come in automatically.