Why you should promote residual AffiliateMarketing
Are you a webmaster looking for extra income? Or are you thinking of starting an online business but still don't have a product to sell? If so, affiliate marketing may be the best solution to your problems. With affiliate marketing, you don't have to worry about what products you need to sell. All you need is a website with sufficient content 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 some money immediately!
Affiliate marketing is a kind of business relationship established between a merchant and its affiliates. In affiliate marketing, an affiliate agrees to drive traffic to a merchant's website. If that traffic is converted into some sort of action, such as a visitor purchasing a product from the merchant's website or becoming a lead for the company, the affiliate who directed the traffic will be compensated. Compensation can take the form of a percentage commission on sales generated or a fixed amount predetermined when the affiliate signs up for the merchant's affiliate program.
Promising many benefits for both merchants and 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 anyone can join. Most retailers entice people to become affiliates or members of their program by promising great benefits such as large commissions, lifetime commissions, click-through revenue and many other benefits. But do all these affiliate programs offer the same benefits?
Most affiliate programs pay you, the affiliate, a one-time commission for each sale or lead you bring to the merchant's website. Commissions for these types of affiliate programs are usually significant, ranging from 15% to a maximum of about 60%. Other affiliate programs pay you a fixed commission for each click or traffic you send to the merchant's site. These programs often pay a lower commission for each click, usually no more than half a dollar. The advantage of this type of program, however, is that the visitor doesn't have to buy anything for the affiliate to get paid.
Another type of affiliate program is the residual income affiliate program. Residual affiliate programs typically pay only a small percentage of commission on sales for each sale directed by the affiliate to the merchant's site. This commission is often only on the order of 10-20% of the sales commission. For this reason, many people ignore residual affiliate programs and opt instead for the highly profitable single commission affiliate programs. Are these people making a mistake, or are they making the right decision?
We can't say for sure if people are making a mistake by choosing a high-paying, single-commission affiliate program. But we can certainly say they are making a big mistake if they ignore residual affiliate programs. Residual affiliate programs are indeed less remunerative, but merchants who offer these types of programs usually pay you regular and continuous commissions for a single sale initiated by the affiliate! In other words, for the same effort you put into promoting a particular affiliate program, you only get paid once under a single commission program, and a regular, ongoing commission under a residual program!
So, are the benefits of promoting residual affiliate programs clearer to you now? Or are they still vague? If so, let's make them a little clearer with this example.
Let's assume that two online merchants both offer web hosting services on their sites. The first one offers a one-time commission affiliate program that pays $80 for each sale made by an affiliate. The second merchant also offers an affiliate program, but this time a residual affiliate program that pays only $10 for each sale initiated by the affiliate. As an affiliate, we may be immediately attracted to what the first merchant is offering, as $80 is certainly much more than $10. But if we think carefully before jumping in, we may find that the second merchant offers us more opportunities to make more money.
Let's say you drove traffic to the merchant and it turned into a sale, you will get paid once by the first merchant for the sale you initiated. But with the second merchant, you will be paid monthly as long as the customer you referred to the merchant continues to benefit from the web hosting service. This means that for the same effort of getting a customer to take advantage of the merchant's service, you get paid monthly in residual affiliate programs while you only get paid once in single commission affiliate programs.
So, are residual affiliate programs worth promoting? Certainly yes, because you virtually make more money with these types of affiliate programs in the long run! And are residual affiliate programs the most effective for you? Probably not, probably yes. That's not really for me to say. But with the benefits that residual affiliate marketing can provide, it would be really unwise to ignore these programs.
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