Paid per click vs. Pay per sale

When using affiliate programs, the option of getting paid per click is often tempting. This can be in form of contextual advertising, or traditional PPC programs. This option, how ever, is not the best option in all cases. How do you know when to choose to be paid per click, and when to choose a PPS model?

People familiar with adsense or other forms of contextual ads – with a fluctuant amount paid for each click – are aware of the big difference between the price for a click in a competitive niche and a less competitive one. These days, there are numerous websites dedicated to listing and reviewing various keywords and niches for contextual advertising.

If you have a website in a niche lucrative and competitive – and you are attracting visitors – you might stand a good chance of getting a fair amount of money for every visitors you send thru contextual ads, but if you are running a website in a less competitive niche, odds are you not to thrilled with the money you make with contextual ads.

This is a perfect time to switch to an affiliate program. The good thing about affiliate programs lies in the ability to target the products and ads yourself, while with contextual ads, you are stuck with a more or less accurate script deciding what will convert best and pay you the most.

There are a few differences in promoting a pay per sale affiliate program, both difficulties and possibilities.

The main difficulty is you are now hoping for your visitors to, not only click, but to buy the products or services you are advertising. With contextual ads – in its simplest form – all you need to do is place the code on a prominent placed and cross your fingers. With affiliate programs you need to be more subtle. Looking only at the commission you will receive, and not looking at the quality of website you are sending visitors to, will not be a very profitable project. Instead, you should do as much research you possibly can, and always try to improve both your click thru rate and your conversion rate. Don’t be afraid to try new affiliate programs if the first one won’t make you any money.

When using static ads – banner and/or text ads – you have a much better way to choose the ads according to your visitors. Different from the scripts doing the work with contextual ads, you have the means to look at several other factors to decide what you site is about. Looking at your visitors will give you additional information on what products or services they might be looking for, and hopefully buy.

In addition to this, you have a good chance of promoting the products you are advertising, hence pre-selling them. This is known as one of the most important factors when working with online affiliate programs, simply because your visitors often have some level of trust in you and your writing. This has little to do with you or your website, but simply because people tend to believe the person not obviously gaining from it. If a website brags about their products, people will filter it out, deeming it blatant advertising, but if another source – you – tells them the same thing, they are less reluctant to consider it the truth.

As a rule of thumb, traditional pay per sale affiliate programs will perform better than contextual ads in niches of low to medium competition. In niches of high competition – i.e. pharmacy products, gambling and travel – the price paid per click can sometimes make the use of contextual advertising it highly profitable.

Affiliate programs instead of Adsense

When using contextual ads – such as Google Adsense – one of the problems you are facing, is the obvious way the ads are displayed. It is no secret people try to stay clear from advertisements, and if given a choice, most would rather click a random link instead of an obvious ad.

If you use text links from various affiliate programs instead of Adsense, you will have a much greater chance of having people clicking your links, instead of just glancing at them seeing nothing but the "Ads by Google" under the ads.

Using affiliate programs correctly will give you several ways of increasing your revenue, it’s not just the placement and style of the ad;

Banners or text links

Although nearly all contextual adverting allows you to choose between banners and various forms of text links, using the banner option leaves you with no way of ensuring the design and colors of the banner won’t mess up your site. With a static banner from an affiliate program, you know how it looks – No surprises here. Combining banners and text links are much easier when you are deciding exactly what to put on your pages, not a script.

Tempting anchor

With Adsense, you are relying on the advertisers to figure out catchy and well converting anchor texts for their ads. Much in the same way, you can’t do much about typos, grammar or bad language. Although there are filters of various types – i.e. adult language and content – advertisers who try hard enough have little or no problems getting by many of these filters.

Number of affiliate links

The predetermined ad blocks do not always fit your web design and the same applies to the number of links. Working with affiliate programs, it is up to you how many links you add to your pages, making both the design and readability of the ads far better than a ready made website template ever will.

Contextual simplicity

One thing most contextual advertising have in common is the simplicity. It doesn’t matter if you are an advertiser or a publisher; the quick and easy ways of implementing the ads often makes it easier to choose Adsense than it is to use an affiliate program. On very large sites, contextual advertising serves a purpose as part of the advertising – especially on pages with limited traffic. But, on pages with large quantities of traffic, choosing one or a few well converting affiliate programs will be worth the effort.

Size of commission

The main upside of affiliate programs is the commission. The commission is generally higher than contextual ads, but the most important thing is; you know what you get paid. Adsense – and most other contextual advertising – relies on advertisers bidding for keywords, thus making it hard – not to say impossible - to predict the revenue. With affiliate programs, you are offered a predetermined commission per sale, lead or click, making it easier to calculate your earnings. On the other hand, people researching Adsense keywords and their estimated CPC can make you a fortune if doing it right. But, for the rest of us, affiliate programs will be the more lucrative choice. If you just have the time and patience.