Affiliate marketing programs has been effective for companies and merchants in selling products and services. Its been a cost effective towards promoting and selling of goods in the internet and it generates consistent flow of profit. Affiliate programs has 3 basic categories, these are the Pay Per Performance, Pay Per Click and Residual Income Affiliate Marketing.

Pay Per Performance is what most companies and merchants want to use. The process here is very simple, the company only needs to pay upon an affiliate referral action. This action refers to a purchase of the product or a certain lead. The company saves a lot of money on this method because the affiliates will spend their own funds in order to promote the affiliated products or services.

Under this Pay Per Performance is the Pay Per Sale (PPS) and Pay Per Lead (PPL).

• Pay Per Sale performance refers to the process when the company only pays the affiliate when a certain user has processed a purchase of the product.

• Pay Per Lead performance refers to the process when the company credits the affiliate for referring a user to the merchants website and process something on the site. Example of this process is when the user requests a quote or filled up an online form.