Two of the most popular internet marketing have, up to recently, been PPC (pay per click) and PPS (pay per sale) or PPA (pay per action). However, becoming increasingly popular among online marketers, is PPL (pay per lead) marketing.

Pay per lead marketing is an online marketing model in which an advertiser pays for leads instead of paying per sale or per click. The amount paid out per lead is the CPL or cost per lead.

On the PPL model, a lead is considered an actual signup for information about a product or service, or the collection of demographic information from qualified individuals (highly targeted potential customers). Generally, there is no actual monetary transaction involved in obtaining the lead. A lead can consist of as little information as an email address or it can be a more thorough set of data such as the lead’s email address, mailing address, phone number, age, annual household income, etc. Generally the more information which is collected, the more which is paid per lead.

PPL marketing works, quite simply, in the following manner: You place a PPL advertisement on your website. Visitors to your site who click on the advertisement will be taken to the advertiser’s website. Typically, a free product (such as a newsletter or report) is offered. If the consumer signs up for the free product, the company will obtain the demographic information that they are looking for, you get paid a commission for leading the individual to the merchant’s site. A sale is not required for you to earn money.

For example, a website may give away quotes from the top five auto loan companies. To obtain the quote, a visitor will have to submit certain requested demographic information (name, contact information, income, etc.) Subsequently, the owner of the website could turn around and sell the information as leads to auto loan companies for, say, $5.00-$20.00. Everyone benefits. The owner of the website makes money collecting and selling qualified leads, the auto loan provider makes money off the interest on loans made to qualified applicants, and the consumer is matched with loans commensurate with their particular needs.  

PPL marketing is one of those rare marketing models that seems to be beneficial to all three parties involved in the transaction. The merchant is able to procure affordable advertisement in only having to payout for qualified leads, and will obtain more leads utilizing this method than any other. The “affiliate” will earn commissions even in the absence of a sale (most consumers visiting the merchant’s site will sign up for the free offer as they are highly targeted to begin with). As well, the consumer is provided with information, products, and/or services that he or she is actively searching for. It’s a win-win-win situation for all!

PPL marketing is great for the advertiser, the merchant and the consumer and it is an excellent way to build a highly-targeted opt-in list as well, and affordably so. All savvy internet marketers should be utilizing this marketing strategy, if they aren’t already doing so.   

Justin Michie is an Internet Marketing specialist, small business consultant and author of the best selling Internet Marketing Book, Street Smart Internet Marketing . If you’re interested in learning more about marketing on the internet and/or making money online, you can pick up a copy of his brand new book from www.InternetMarketingBook.com.