online marketing newsletter
honest product reviews
  website promotion logo

related topics:
pay per performance web traffic  report
pay per performance search engine  review

pay per performance advertising

Different ways for performanced based advertising

While advertising with any major pay per performance search engine is the only way to easily get a constant stream of targeted visitors to your web site, You still face the risk of not converting a large percentage of these visitors into customers. Whether youīre targeting the wrong keyphrases or your web site doesnīt entice people enough to buy - your success is not guaranteed.

So wouldnīt it be better You pay for advertising only when you actually make the sale ? - Of course it would !

This type of pay per performance advertising is also called "affiliate marketing". There are tens of thousands of potential sales men and women out there waiting to promote your products and services, willing to send you targeted website traffic for free. And the only money you pay is a share of your profit when some of their referrals purchase from your site.

How to get other people to sell your stuff

Obviously - Youīll need to find people who are willing to sell your products or services, have webmasters with high traffic websites to place links to your sales page and a system to track their referrals in order to accurately reward them for sales.

Donīt worry - itīs pretty easy to have an affiliate program set up within a couple of hours and You donīt need to buy expensive software to have this done. Basically You have two options:
1. Join an APP-network (affiliate program provider) or
2. Start your own individual affiliate program with a third party affiliate tracking and sales automation service.

Advantages and Disadvantages of ...

pay per performance advertising with APP networks

An APP (Affiliate Program Provider) network like Comission Junction (CJ), Linkshare or Share-a-Sale has the big advantage that your affiliate program can be instantly seen by tens of thousands of affiliate marketers, so you donīt need to spend much time searching for and contacting possible partners.

Another advantage is that all the performance tracking and also the affiliate payments are handled by the APP. No need to spend time issueing checks and mailing them out in time.

The disadvantages with APPs however are that they also ask for their share, which is usually about 20-30% of what you pay for the performance of your affiliates and some are not only really expensive to join, but also require a minimum monthly spend, which doesnīt fit everybodyīs budget.
Another disadvantage is that the affiliate program structure of these pay per performance advertising networks is limited to one tier only. (See advantages of two-tier affiliate programs further down this page).

APP networks compared

Commission Junction / BeFree:

CJ is the choice for big companies, because the price to join is pretty expensive but they also have a large number of affiliates. These are the prices:

setup fee (one-time): 2250 $
yearly maintainance: 250 $
initial deposit: 3000 $
transaction fee: 30%
(i.e. CJ takes 30% of what you pay your affiliates, or when an affiliate earns 100 $ in commission, you pay an extra 30 $ to CJ)
monthly minimum spend: 500 $

Commission Junction


They donīt reveal their pricings on their website, so you need to contact them and ask for it. LinkShare

Share a Sale:  -   best choice !

This pay per performance advertising network is one of the newer ones, but in the past few months has grown to almost thousand advertisers and several thousands of affiliates. The big advantage of Share-a-Sale is that they are very affordable, yet.

Thereīs only a one time setup fee of 250 $ and a first minimum deposit of 50 $ (used to pay affiliate commissions), but whatīs more important: the monthly minimum is very low - currently only 25 $. Their share of the commission pie is only 20%, so you can offer higher commissions to your affiliates in order to incentivate them to sell more of your products.
Compare that to the thousands of dollars youīd pay at Commission Junction and their high monthly minimum spend !

I highly recommend you use Share-a-Saleīs pay per performance advertising network and donīt wait too long, because Iīm sure that they are going to rise the price when they keep growing.


Who knows if Iīm not going to be your first affiliate ?

Advantages of having Your own two-tier affiliate program

A two-tier affiliate program can be easily used together with your existing merchant account or payment processor. Two-tier means that you not only offer a certain percentage of a sale to your affiliates, but also a small percentage of each sale made through their sub-affiliates, i.e. other webmasters and affiliate marketers they brought to your affiliate program.

Do you see the potential here ?

Iīve told you that one disadvantage of an own affiliate program is that You need to go out and search for potential partners yourself, but  by offering them a second tier commission, you are incentivating them to recruit more partners for You ! Thatīs how some companies got tens of thousands of affiliates in just a few months.

And as you donīt need to pay an APP, you can offer higher commissions to your advertising partners, turning your affiliate program more lucrative for them and therefore also more attractive !

To learn more about a powerful and affordable shoppingcart AND two-tier affiliate managment system, visit
Take a 30 day test drive for only 3.95 $ !

Whishing You lots of success !

Guido W. Stiehle

Internet Marketing - Home
Contact Me
Internet Marketing Blog
Marketing Newsletter Issues
Old Newsletter Archive
More Marketing Articles
Product Reviews Index
Product Reviews on my Blog
SEO Course

i-cop member seal

Free Online Business Tips and News

Subscribe to my Blogīs RSS Feed to receive seo updates, online business and website marketing tips.

RSS Feed

Important SEO Tools

  Keyword Research Tools

  Overtureīs keyword tool

  Link Popularity Building

  good web directories

  SEO site analysis

  Internet Business Promotor

More Resources:

Google Cash Review

SEOelite review

Webmaster Tutorials - EasyWebTutorials

Free HTML Video Tutorial

RSS Feed Parser

Website Directory


Disclaimer, Terms and Privacy Policy

© COPYRIGHT 2003 all rights reserved