Pay Per Click
Pay-per-Click programs offer a variety of advantages and disadvantages compared to affiliate programs. The advantage pay-per-click programs have is that they are generally easier to set up and maintain, and that they pay commissions even if your visitors never make any purchases.
Another key advantage of pay-per-click programs are that they are generally targeted towards a very general audience. Affiliate programs are best promoted by specifically targeting what is sold to your visitor's interests. This may make pay-per-click programs a better choice if it is difficult to determine what products or services your visitors might be interested in.
Pay-per-click programs also have disadvantages. Because of their general nature, they might not be the best choice if your site has a narrow focus and a targeted audience. Pay-per-click programs also generally pay less than affiliate programs since you are trading higher commission rates for a higher probability of earning income (since your visitors need only click, rather than purchase).
Additionally, pay-per-click programs also have the tendency to be more likely to balk on paying their affiliates or to cancel an affiliate site's membership just as payment is due (sometimes justly, sometimes not). A final disadvantage is that pay-per-click programs can't generally be promoted in email newsletters, making them unsuitable if you have developed a mailing list which relies on affiliate program income.
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