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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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