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PPC Affiliate Programs
By Pulsar Marketing | Published 02/20/2007
Pay Per Lead and Per Sale over PPC Affiliate Programs.

There are definitive advantages to both affiliates and to advertisers to operate pay per lead or per sale campaigns over pay per click affiliate programs.

As click fraud and the cost of obtaining top listings for keywords increases, there will be an incremental shift away from ppc affiliate programs to pay per lead or sale campaigns. You may have seen reports of the rising budgets being paid for ppc programs, but don't let the numbers confuse you. The higher ppc budgets do not necessarily mean companies are expanding their pay per click programs, but rather the cost of doing so is increasing. The factors contributing to the higher cost are (1) Click fraud; and (2) Competition for top keyword placement.

Advertisers are suffering escalating ppc costs with decreased results. Their ad dollars are getting less exposure and less results through ppc campaigns.

According to Pulsar Marketing's independent research with a majority of its client base, many who still employ ppc search engine advertising do so to meet one of two situations: (1) To promote a product or service that is seasonal in nature; and/or (2) As a quick launch of a new consumer product/service. In the view of Pulsar Marketing, these are the only two instances in which search engine keyword bidding (and a ppc affiliate program) should be considered over a per lead or per sale program. For ongoing, non-seasonal promotions there will be less emphasis on ppc and more use of affiliate per lead and per sale programs.

The advantages to advertisers of per lead and per sale over ppc affiliate programs are obvious. Advertisers can maximize their ad dollars and more deeply brand their company.

Advantages of per lead and per sale programs for affiliates may not be as obvious, at least not at the moment but soon will be. Advertisers are already employing software to detect click fraud. The result of the software's revelations of click fraud is in itself convincing them to discontinue ppc advertising. And the next generation of click software will include a higher degree of fraud detection, revealing yet higher levels of fraud and; ultimately, a decision to abandon ppc advertising entirely if search engines do not take drastic action. The end result for affiliates who are currently enjoying large scale ppc commissions, will be a steady dwindling of those commissions. Perhaps being awarded for only a percentage of their clicks such as 1 out of 5 clicks, as the next generation software rejects clicks from certain IPs, repeat clicks from the same IP within a 30 day period, and clicks which result in only a few seconds of visitation to advertiser websites.

Per lead and per sale programs; when effectively employed on quality websites, can already generate higher commissions for affiliates than ppc affiliate programs. Instead of earning pennies per click, affiliates can earn dollars. For example, some per lead affiliate programs have an Estimated Earnings Per Click (EPC) rate of 75 cents; and some even higher. EPC is calculated as the number of clicks which result in earning a per lead/sale commissions, divided into the commission amount. A per lead program that results in one $10 sale on average for every 10 clicks (visitors), has an EPC rate of $1.00 ($10.00 divided by 10 clicks equals $1.00). Most ppc affiliate programs; however, pay only 5 cents.

As more efforts are developed to combat, and to reject paying commissions for ppc fraud, the gap between potential earnings of ppc and per lead/sale programs will become wider and more evident to affiliates.

We strongly recommend to affiliates who are still relying upon ppc affiliate programs for their earnings, to begin developing websites which are geared towards per lead and per sale programs. The main problem with most ppc affiliate websites is the lack of "stickiness". Most are just loaded with keywords to attract search engine clicks, and subsequently to get those visitors to click on a ppc link. It's an "in-and-out" and "never-return" experience for their visitors. Instead, ppc affiliates should develop websites that are more long-term oriented (content that will get visitors to bookmark the website as a future resource, to tell their friends and family about it, and offers them a free newsletter to encourage re-visiting again and again).

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