Income for Performance-based advertising - Business Affiliate

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A publisher may charge defined prices for performance-based advertising, so much per click or call, but it is common for prices to be set through some form of "bidding" or auction arrangement. The advertiser states how much they are willing to pay for a user action, and the publisher provides feedback on how much other advertisers have offered. The actual amount paid may be lower than the amount bid, for example 1 cent more than the next highest bidder.

A "bidding" plan does not guarantee that the highest bidder will always be presented in the most prominent advertising slot, or will gain the most user actions. The publisher will want to earn the maximum revenue from each advertising slot, and may decide (based on actual results) that a lower bidder is likely to bring more revenue than a higher bidder - they will pay less but be selected more often.

In a competitive market, with many advertisers and many publications, defined prices and bid-based prices are likely to converge on the generally accepted value of an advertising action. This presumably reflects the expected sale value and the profit that will result from the sale. An item like a hotel room or airplane seat that loses all value if not sold may be priced at a higher ratio of sale value than an item like a bag of sand or box of nails that will retain its value over time.

A number of companies provide products or services to help optimize the bidding process, including deciding which keywords the advertiser should bid on and which sites will give best performance.

Budgeting Tips

A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms. More info at Budgeting Tips

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Its one thing to have a great product and its quite another to make sure customers know about it. And that principle is even more vitally true when you list your product on the Clickbank marketplace. There are literally tens of thousands of products available for affiliates to pick up and sell within Clickbank. And even though there are over 150,000 affiliates, that is a huge marketing environment. More info at A Little Bragging Goes a Long Way

Business Affiliate Resources

Performance-based advertising
Economy Benefits
Income Metrics
Income Pricing
Fraud & Issues

compensation methods in affiliate marketing
Pay-per-sale (PPS) - (revenue share)
Pay-per-lead (PPL)/pay-per-action (PPA)
Pay-per-call
Pay-per-install (PPI)
Pay-per-click (PPC)
Pay per action (PPA)

display advertising
Pay-per-impression (PPI)
Pay per action (PPA) or cost per action (CPA)

contextual advertising
Pay-per-click (PPC)
Pay-per-impression (PPI)

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