Why You Should Promote Residual Affiliate Programs
Are you a webmaster in need of additional income? Or are you
planning to set up an online business but you still don't have
any product to sell? If so, affiliate marketing may be the best
solution for your problems. With affiliate marketing, you won't
need to worry about the products you have to sell. All you need
to have is a website with sufficient contents that are related
to the products of a certain online company offering affiliate
programs. By becoming a member of the program, or by becoming an
affiliate, you can start earning a certain amount of money right
away!
Affiliate marketing is some sort of business relationship
established between a merchant and his affiliates. In affiliate
marketing, an affiliate agrees to direct some traffic to a
merchant's website. If that traffic is converted into some kind
of action, like a visitor purchasing a product on the merchant's
website or a visitor becoming a lead for the company, the
affiliate who directed the traffic will be compensated.
Compensation may take the form of either a percentage sales
commission for the sales generated or a fixed fee predetermined
upon the application of the affiliate on the merchant's
affiliate program.
Promising a lot of benefits both for the merchants and the
affiliates, affiliate marketing has become one of the most
popular online marketing methods today. In fact, almost every
merchant or retailer site today offers an affiliate program that
any one can join into. Most retailers would entice people to
become affiliates or members of their program by promising great
benefits like large commissions, lifetime commissions, click
through incomes and a lot of other benefits. But would all these
affiliate programs bring off the same benefits?
Most affiliate programs would pay you, as an affiliate, a
one-time commission for every sale or lead you brought to the
merchant's website. Commissions for this kind of affiliate
programs are usually large, ranging from 15% to a high of about
60%. Other affiliate programs would pay you a fixed fee for
every click through or traffic you send to the merchant's site.
Programs like this often pay a smaller fee for every click
through, usually not getting any larger than half a dollar. The
good thing about this kind of program, however, is that the
visitor won't have to purchase anything in order for the
affiliate to get compensated.
Another type of affiliate program is the residual income
affiliate program. Residual affiliate programs usually pay only
a small percentage of sales commission for every sale directed
by the affiliate to the merchant's site. This commission often
comes only in the range of 10% to 20% sales commission. Because
of this, many people ignore residual affiliate program and would
rather opt for the high paying one-time commission affiliate
program. Are these people making a mistake, or are they making
the right decision?
We can't tell, for sure, if people are making a mistake by
choosing a high paying one-time commission affiliate program.
But we can definitely say that they are making a large mistake
if they ignore residual affiliate programs. Residual affiliate
programs would indeed pay at a lower rate, but merchants
offering such kind of programs would generally pay you regular
and ongoing commissions for a single affiliate initiated sale!
That means, for the same effort you made in promoting a
particular affiliate program, you get paid only once in a
one-time commission program, and a regular and ongoing
commission for a residual program!
So, are the benefits of promoting residual affiliate programs
clearer to you now? Or are they still vague? If they are still
vague, then let's make them a bit clearer with this example.
Suppose there are two online merchants both offering web hosting
services on their sites. The first merchant offers a one-time
commission type of affiliate program that pays $80 for every
single affiliate initiated sale. The second merchant also offers
an affiliate program, but this time a residual affiliate program
that pays only $10 for every single affiliate initiated sale. As
an affiliate, we may get attracted at once at what the first
merchant is offering, as $80 is definitely a lot larger than
$10. But by thinking things over before actually getting into
them, one may be able to see that the second merchant is
offering us more opportunity to earn a larger amount of money.
Supposed you have directed traffic to the merchant and it
converted into a sale, you'll get paid once by the first
merchant for the sale you have initiated. But with the second
merchant, you'll get paid monthly for as long as the customer
you have referred to the merchant continues to avail of the web
hosting service. That means that for the same effort of getting
one customer to avail of the merchant's service, you get paid
monthly in residual affiliate programs while you only get paid
once in a one-time commission type of affiliate programs.
So, are residual affiliate programs worth promoting? Definitely
yes, because you virtually get more money from these types of
affiliate programs in the long run! And would residual affiliate
programs work best for you? Probably not, probably yes. It is
not really for me to tell. But with the benefits that residual
affiliate marketing can provide, it would really be unwise to
ignore such programs.
About the author:
Mohd Sufian publishes Home Business Tips, A fresh and
informative newsletter dedicated to supporting people like YOU!
If your're looking for the *best rated home business
opportunities, the latest time saving tools and helpful support
from an honest friend in the business, come by and grab a
F-R-E-E subscription today at: http://workathome-guide.com
Written by: Mohd Sufian
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