🧠 The Different Types of Affiliate Marketing
Affiliate marketing is booming — and for good reason. Both merchants and affiliates are realizing just how powerful this model can be. For merchants, it’s a cost-effective way to promote products. For affiliates, it’s an accessible and rewarding way to make money online by simply doing what they love — like building websites, sharing content, or running campaigns.
With its growing popularity, affiliate marketing is no longer just a “side hustle.” For many, it’s become a primary income stream.
So let’s break down the core types of affiliate marketing programs you’ll encounter — and what they mean for you.
💰 Pay Per Click (PPC) vs. Pay Per Performance (PPP)
1. Pay Per Click (PPC):
Affiliates earn money every time someone clicks on the merchant’s ad — whether or not they buy. It’s ideal for affiliates with smaller sites or newer traffic sources, but the payouts tend to be lower.
2. Pay Per Performance (PPP):
Here, affiliates only get paid when a visitor takes a specific action — such as making a purchase or submitting a form. This category includes:
- Pay Per Sale (PPS): Commission earned when a sale is made.
- Pay Per Lead (PPL): Payment when a visitor fills out a form (common in insurance, education, or finance).
Bottom Line: While PPC offers easier wins, PPP generally brings in higher and more reliable income over time.
🔗 Single-Tier, Two-Tier, and Multi-Tier Programs
The structure of affiliate networks can vary:
- Single-Tier: You earn commission only from the sales or traffic you directly generate.
- Two-Tier: You earn from your referrals and from affiliates you’ve introduced to the program.
- Multi-Tier: Think of this like affiliate marketing MLM — commissions can flow from multiple levels of referrals.
Multi-tier systems are great if you’re building a team-based strategy, or have an audience of aspiring affiliates.
♻️ Residual Income Programs
Here’s where things get really exciting.
Residual income affiliate programs pay you recurringly — not just once. If you refer a customer who makes repeat purchases or stays subscribed (like in SaaS tools), you get paid every time they do.
This is how many top affiliates build passive income streams.
🔍 Which Type Is Best for You?
There’s no one-size-fits-all. The best affiliate program depends on:
- Your audience type
- Your traffic strateg
- Your goals (quick wins vs. long-term passive income)
Experiment with different models and track performance to find the perfect fit.
