The Different Types Of Internet Marketing

Internet marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of internet marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the internet marketers can see clearly that internet marketing can work for both of them. The merchant sees internet marketing today as the chance to advertise their products at a lower cost. The internet marketers, on the other hand, sees internet marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of internet marketing has shifted into greater heights, so has the people's outlook about it changed. No longer is internet marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the internet marketers. For merchants and internet marketers alike, internet marketing is now considered as a main source of profits and revenues.

So the question now is what type of internet marketing will work best for you? Are all internet marketing programs the same? Are the benefits the same? Or are there internet marketing programs that work better than the others?

There are actually different types or classes of internet marketing, and the number of types will depend on how one will classify them. The most basic internet marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

Pay Per Click (PPC)

PPC is the most popular type of internet marketing for internet marketers with small websites, and probably the easiest way for them to earn money. In this internet marketing type, the merchant pays his internet marketer whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The internet marketer gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site. However, typical fees for PPC internet marketing programs are small, usually not exceeding a dollar for every click.

Pay Per Performance (PPP)

PPP internet marketing is the most popular among merchant and is also the most lucrative type for the internet marketers. In this type of internet marketing program, the merchant only pays the internet marketer whenever his referral translates into an action—that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated internet marketer, for commissions in PPP internet marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance internet marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

Pay Per Sale (PPS)

In a pay-per-sale type of internet marketing, the merchants pay the internet marketer a certain fee whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. Internet marketers are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to internet marketers in a pay-per-click internet marketing program.

Pay Per Lead (PPL)

The pay-per-lead type of internet marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of internet marketing, the internet marketer is paid whenever the visitor he referred to the merchant's site fills up an application form or any similar form related to the business of the company. Compensation for this type of internet marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from these three specific types of internet marketing, a lot of other internet marketing types exist. If the classification is based on the depth of the internet marketer network, it can be classified as single-tier, two-tier, and multi-tier internet marketing. There is also another type of internet marketing that pays the internet marketer each time the customer he has referred purchases something from the merchant's site.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of internet marketing are based on the different levels or tiers in the internet marketer network by which payments are made. In a single-tier internet marketing program, the internet marketers are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned internet marketing types (i.e. PPS, PPL, and PPC) fall under the single-tier classification.

In two-tier internet marketing programs, the internet marketer is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other internet marketers who joined the internet marketing program through his recommendation. Multi-tier internet marketing works the same way, although the internet marketer gets additional commission for a wider number of internet marketers in different tiers in the internet marketer network.

Residual Income Affiliate Marketing

In residual income internet marketing, the internet marketer gets paid not only once for every customer he has referred to the merchant's site. Rather, the internet marketer is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of internet marketing is based on either sales percentage commission or fixed fee basis.

The different internet marketing types would virtually work differently for merchants and internet marketers alike, and each would generally have their own list of benefits. Which type of internet marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of internet marketing program will suit your needs and characteristics best.

Thank you for spending time with me and I hope you'll enjoy the journey of learning experience for a better life!