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.