How to Recruit Affiliates: Part 2

When you're in the business of recruiting affiliates, you need to know that some affiliates have been doing this for awhile and they know what they're looking for, and what they're not. The type of plan you decide to use when you pay your affiliates will determine, in many cases, who will come to you and who will not. There are three major plan types for you to consider. However, there are also tiers. We'll start with the plans, then move into a discussion on tiers.

Pay-per-click, or PPC, plans are the plans you may have heard the most about. This type of affiliate plan, as with the other two, is performance based. The way it works is simple. A visitor to a website sees a banner ad or some other link to a site. He or she clicks on that link. Each click is worth a payment to the owner of that site. While this is a great way to go, there has been some concern recently about "click fraud" where clicks are being generated with the sole aim of getting more money for the host site.

Pay-per-sale, or PPS, plans allow for more discretion. With this type of plan the merchant only pays the commission to the affiliate when a sale is made. Whatever the commission is, the merchant pays based on the price of the merchandise sold.

Pay-per-lead, or PPL, is the final type of commission plan. With this plan the merchant will pay the commission to the affiliate whenever a lead is generated. This may happen either from directed traffic that comes to the merchant's site and signs up for something, or in some other way can be considered as a 'lead'.

Now let's take a look at tiers. The way tiers work is pretty simple as well. It's all about referrals. Let's say you set up 2 tiers. The first tier is affiliates who came directly to you. They will receive commission not only on the traffic they send to you, but also on the traffic their referrals send as well. The second tier is affiliates who were referred to you through another affiliate. These receive commission on their directed traffic, and the first tier affiliate receives a smaller commission as well, with not work done on his or her part.

These are the primary options you have when you decide to set up an affiliate plan. You can work out the details however you like. Just remember that the main thing is whether or not your plan will be competitive and therefore worth the affiliates time to join up.

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