There are several types of affiliate advertising methods for a website.
The different types are:
Pay Per Lead
Pay Per Sale
Pay Per Click
Pay Per Lead Advertising
Pay per lead advertising enables advertisers to pay for the contact information of a targeted customer.
It is usually used by advertisers who wish to build a newsletter or potential customer list. Most companies use their cost per lead advertising to connect with customers who are interested in their brands. A customer who is interested enough to voluntarily fill out a form is more valuable to a company.
What's in it for you?
An advertiser will pay you if you direct a customer to their website and the customer fills out a form as directed by the advertiser. You are paid when the customer successfully fills out the form. If you have a solid niche topic on your website, you can make money fast from home. The key is to learn how to drive traffic to your site.
Here are some companies that offer pay per lead affiliate advertising. You signup and place ads on your website and make money, it's that simple.
Pay Per Sale Advertising
Pay Per Sale advertising is a advertising system where the publisher (you) are paid commission. The commission you make is based on the sales that are generated from the advertisement you place on your website. For example, if you are advertising for Amazon, their commission is typically 4% of the purchase a customer makes. Just by having a website and posting advertisements, you could make money free online.
To join a network of pay per sale advertisers, there could be a fee to join and there are also requirements around entry to the network. I wouldn't recommend paying any fees to join as it cuts into your commissions and if you're not making the maximum possible, what's the point?
What's in it for you?
You advertise for a merchant on your site and you receive commissions when a customer clicks on the ad and completes a transaction on the advertisers site, from your site.
You can earn a great deal of money if your traffic is part of the advertiser's targeted audience. If you do not have a high traffic site or a specific audience, your earnings could be significantly lower if you choose pay per sale advertisements on your website.
Here are a list of companies that offer pay per sale affiliate advertising. You place ads on your site. When a user clicks on your ad they are directed to the advertiser's site. If they make a purchase, you get a commission from that sale.
Pay Per Click Affiliate Advertising
Using your website, you post ads on your pages. If your ads are pay per click, the advertiser pays you if a user clicks on their ad from your page. Pay Per Click ads are beneficial to both the advertiser and the publisher (you) displaying the ads. It gives you the opportunity to make money from a website and it allows the advertiser to only pay if an ad is clicked. The advertiser is noticed and you get money if someone clicks on the ad.
For an advertiser, Pay per click affiliate advertising is a cost effective way to get their site or product noticed by a target audience.
Pay Per Click works somewhat similar to an auction. Advertisers will bid on keywords or phrases that their target audience may search for when they are looking for specific products.
Often on a search engine, pay per click ads are displayed often as "sponsored ads" or "sponsored links" which makes them noticeable on a page filled with search results and text.
What's in it for me?
When you post ads on your site and someone visiting your site clicks on it, you are paid for that click. Whether or not you get a higher conversion rate will depend on the banner and whether or not it attracts people to click it. The pay per click method is a higher conversion rate than pay per sale. If you have a high traffic site, you are more inclined to have a higher click rate than a low traffic site. You will also get better results if your banners are selected to suit the target audience of your site. Google Adsense automatically displays ads based on the content of your page.
Make sure you do your due diligence and research before choosing the affiliate network for your website. The big players in pay per click advertising are Google Adsense and Microsoft AdCenter.
It's quite possible to become a full time work from home webmaster but you need a good solid niche, with lots of rich content before quitting the day job. However, with a little hard work it is possible to make money from your website with affiliate advertising.