Website Affiliate Programs - Commission Links or Pay Per Click.
Category: Adsense and Affiliate Articles.
Unless your website is completely non-profit and has all the monthly expenses paid for, you probably are displaying some form of affiliate advertising to cover some costs. There are hundreds of different ways to monetize a website, and there are hundreds of extra ways to make it more profitable.
The question is, what kind of affiliate advertising should you put on your website? There are far too many affiliate programs to talk about in detail, so we will be discussing the two methods most websites earn money with; Affiliated Links and Pay Per Click Advertising.
Two Types of Affiliate Advertising: The Basics...
If you take a look at most websites, you can easily spot out where the advertisements are located. Most websites use the ad areas to display text links, which may generate a profit for the website. How the profit is made, is two totally different methods.
Pay Per Click Advertising: The ads are usually shown as multiple text paragraphs or banner images. When a website visitor clicks on the ad, commission is generated instantly. There is no follow up check to see if the click turned into a sale; the only purpose is to get people to click.
The benefit of this method is it is very easy and pretty much any website can use it to earn money. The negative aspect of using this method is you may be giving away a great deal of money each day on lost commissions.
Affiliated Links for Commission: Usually displayed by being a "sponsored product" or being wrapped into a product review, affiliated links can generate great commissions depending on the price of the product. When a visitor clicks on the affiliated link, no commissions are generated until that visitor actually purchases the product being advertised. The website will not convert every visitor into a commissioned sale, but conversion rates can be tracked.
The benefit to this method is that it usually outperforms total website revenue compared to the pay per click method. This all depends on the type of website and quality of visitors, but the following chart will help explain the theory...
Pay Per Click.
|Clickthrough Rate:||10%||N / A|
|Required Visitors||1000||? ? ?|
Which of the two types of advertising would be easier for your website? Do you think you could convert ONE visitor out of 1000 visitors into a sale? Most people find it much easier to do this. In most cases, the website may convert at around 0.5% or 1.0%. From the 1000 visitors required to earn $20.00 with pay per click advertising, the same website should be able to convert at least 5-10 sales using affiliated links.
The Website Topic & Audience Will Define The Type of Affiliate Program...
When placing ads throughout your website, you will want to know some information about the people who are viewing the ads. Internet users see advertisements everyday, but they may not even notice them. Some may subconsciously make note of the ads and make sure not to pay any attention to them.
What is your website about? Are most visitors professionals who are looking for advice for a problem they are having? Maybe most of your web traffic targets the younger age groups which do not have expendable money on hand.
Generally speaking, if you think your website appeals to people who could be classified as "established" and will pay for a solution to their problems, affiliated links will usually outperform PPC by a large margin. You could do very well with pay per click advertising as well, but why should you earn only a few cents for the click through when you could earn good amounts of money if the user purchases the product.
What is the Ultimate Purpose of Your Website?
If you asked a website owner if they wanted to increase their potential income, most would say of course they would. However, there is a fine line when it comes to placing too many advertisements on your website. You need to decide the purpose of the website.
You can retain a good level of professionalism with your website by using discreet affiliate links rather than pay per click ads. Some people believe that a website which displays only PPC loses all credibility and can look confusing.
Look over your website and define what your goal is. Sometimes less advertisements on a website will produce more income than multiple ads. Affiliate link advertisements are usually less obtrusive and will keep your website looking clean.
Every Website is Different - Only Testing Will Show Results...
Like anything with websites, you need to try it yourself to fully understand it. Some websites will perform better with Pay Per Click ads and some will perform better with Paid Affiliated Links.
Even if you take an educated guess at which is better for your website, you need to experiment yourself. Try different combination of ads or try different layout locations, everything can make an impact.
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