The revenue is generated by per-click or per-viewing. Typically the ad content is related to the site’s content through keyword coding done by the webmaster. The webmaster makes money every time an ad is clicked by someone visiting the site.
Pay Per Click
Pay per click and pay per view ads work on the same basic concept. For pay per click, once a visitor to your site clicks through the advertisement to the website promoted, a credit is generated to your account. You may get a flat fee based on each click generated but if you opt for this, it is typically a fairly small amount of money. Or, you get a PPM (pay per mill) amount which means you get paid for every thousand click through visits that are generated from the site.
Depending on the service you choice, you may have the option of choosing one or the other. Or, you may be limited to one particular method based on the advertiser. Either way, the more clicks you get, the more earnings you will receive.
Pay Per Sale
Pay per sale is a very popular form of affiliate marketing. This means that regardless of how many people click through to the advertiser’s site, unless that click generates a sale, you get no money from it. Typically, the tracking cookie that is left from your unique ID retains for a period from seven days to thirty days. This means that even if a visitor clicks through the site but doesn’t purchase for another few days, you will still get the credit for the sale.
Pay per sale advertisers pay based on either a flat fee or a percentage of sale. Some advertisers will pay a flat amount regardless of the amount of sale. For example, if you are getting a flat fee of $12.00 for a sale and the sale is only $10.00, obviously you are coming out ahead. However, if you have the option of choosing a percentage based and the percentage is 10%, the person has to spend at least $100.00 before you see the same amount of money.
This too can be beneficial for higher ticket items, as you have the potential to make a lot more money.
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