Friday, January 07, 2005

Pay Per Click Affiliate Programs

Home :: Pay Per Click Affiliate Programs

A pay per click program is a program where you get paid every time someone clicks on an ad on your website. It's not as common an affiliate model as pay per lead, pay per sale, or rev share. But it's one of my favorite models to make money online, and there are a lot of options available to affiliate webmasters who are interested in this kind of revenue stream. (Google Adsense is a great example of a pay per click affiliate program.)

There are a couple of advantage to this pay-per-click model. One advantage is that you get paid whether or not the person who clicks on the ad buys something. That perk by itself makes it tempting to promote nothing but pay per click (PPC) affiliate programs. Another advantage is that these types of affiliate deals are usually pretty easy to set up.

One disadvantage that promoting a PPC program might have is that it might make less money for you than a rev share or cost per acquisition type campaign might make for you, especially if you're targeting a really tight niche. My advice is to test both models at the same time, and measure how much you make per click with each model.

To calculate your cost per click with a revenue sharing program, you need to have enough data to get a good idea of conversions and what those conversions are worth. You can make a judgement based on 500 clicks, but 1000 clicks or more would give you a more accurate number. To get what you made per click, you just divide the commission you've earned by the number of clicks you've sent. And if you've made more money with the revenue share program than you're averaging with your PPC affiliate program, you'll know which program to promote exclusively or to give premium placement too.


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