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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.
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Invest in your dreams they really do come true if you believe....JM Andrews
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