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Nowadays, affiliate products are becoming more popular for earning money online. There are many reasons for it, the most typical reason is this fact business provides extensive potential to earn profits with very low-cost and very easy to working startup. Internet affiliate marketing now plays an important role in the realm of Internet marketing. There are various types of programs that affiliates can choose and start making money online.

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1. Pay Per Click (PPC): - Pay-Per-Click is the most popular type of affiliate marketing model for affiliates with small websites, and probably the simplest way for generating revenue. It's a program in which the affiliate places the hyperlinks from the products from the merchant website in the website. Whenever anyone visits the merchant's website by follow the link in the affiliate website, the affiliate gets some commission. Commission is paid based on quantity of visitors click on the affiliate websites. Usually the program doesn't create much cash for affiliates, the amount of commission is small.

2. Pay Per Sale (PPS): - PPS is easily the most common model in the internet affiliate marketing scenario today. In this model the advertisers spend the money for commissions on sales of their products. In this kind of model the website owners place an ad on their own site, if any visitors click the ad and purchase a product the website gains commissions for that sale.

3. Pay Per Performance (PPP): - Pay Per Performance is yet another popular affiliate model in this industry which is the highest paying model for that affiliates. In this model the merchant only pays the affiliate whenever his referral translates into the action i.e. the visitors referred actually buys a product in the merchant website or once the visitor turns into a lead. This means the merchant earns lots of money. However it's most lucrative type for the affiliate, for the commission in Pay Per Performance usually comes in the 15% - 20% of the actual product sales.

4. Pay Per Lead: - Pay Per lead affiliate model is often used by finance and insurance companies who focus on leads for company growth. Within this model, affiliates are paid when visitors fill out registration forms or similar documents or provide any kind of personal information around the merchant website through the efforts of the affiliate.

Affiliate marketing models are also categorized as single-tier, two tier or multi-tier: - In single - tier program, the affiliate is paid just for the direct traffic or sales to the merchant website. As well as in the multi - tier affiliate marketing program the affiliate pays for traffic or sales delivered to the merchant site by affiliates that he recruited in to the programs. With multi - tier affiliate program is similar to two - tier affiliate marketing programs, even though the marketer enjoys commissions from the higher number of affiliates in the network.