Network marketing affiliate program has come up in large numbers with many companies offering one. Let us look at the commission schemes
that affiliate merchants adopt to reward their affiliates in such an affiliate marketing program.
Types of commission schemes in an affiliate marketing program
Pay Per Click Commission Scheme
Pay per click commission scheme involves payment of commissions to the affiliates based on the visitor referred by the affiliate irrespective of whether the visitor makes an actually sale or not.
Pay Per Sale Commission Scheme
Pay per sale commission scheme involves payment of commission to the affiliate only on generation of sales leads by the visitors referred by him. There are not payments for the actual visitor referred.
Two tier Commission Schemes
Two tier commission schemes involve the affiliate merchant to pay the affiliate for the direct sale he generates as well as the sale generated by any of his co-affiliates. This scheme allows the affiliate to recruit their own co-affiliates.
Life long commission scheme
This type of commission scheme involves paying out the affiliates each time the visitor referred by him makes the sale irrespective of the time. Life long commission schemes are better off as compared to single term commissions.
These are the various ways in which commissions can be paid by the affiliate merchant to his affiliates in a network marketing affiliate program.