Pay Per Click Affiliate, Pay Per Click Affiliate in Affiliate Marketing
A Pay Per Click affiliate is a person or a company that buys traffic by paying per click and drives that traffic to affiliate offers. If they pay less in clicks than the commission they make from the sale of the item they make a profit; if not, they take a loss. There are affiliates who have made millions of pounds / dollars doing this.
For example: If your company sells blue roses, the affiliate would buy clicks on the paid right hand column on Google for the term “buy blue roses”. The user would then be directed via landing page to your site to buy blue roses. If it costs 10p or 10c per click and one in 10 converts, it costs them £1.00 or $1.00 to make one sale. If they are paid £2.00 or $2.00 per sale then they would make a profit of £1.00 or $1.00 per sale.
There is specialist software available for optimising this process, such as Tracking202 Pro.
Brand Name bidding is a contentious issue.
If your company is called Murray Newlands and someone is searching for Murray Newlands on Google, it is likely that the name of the company Murray Newlands will come up first. Some affiliates want to be able to bid to buy clicks on the brand name Murray Newlands, so that if the user searches on that name they may go via that link to buy a product on the website Murray Newlands. The question is, what value are the Affiliates adding to the process? There are a number of slots on the page where a potential customer can click: however the affiliate merchant should be advertising on his or her terms. There are affiliates who have made their fortune doing this at the expense of merchants.