With the huge ever growing popularity of affiliate marketing, we all find it hard to create new leads on a regular basis. Generating the sale once and have lifetime payouts can create a lot more income for the same amount of work. Creating multiple residual income streams through affiliate marketing is what most people are trying these days.  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. 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 5% to a high of about 75%.  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?

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.

Jump start your affiliate business with Click Bank. While surfing the marketplace look for the Recurring Billing symbol to earn residual income.

So, are residual affiliate programs worth promoting?  Leave your comments below.

Popularity: 54% [?]