SolveYourProblem
Article Series:
Affiliate Marketing Strategies
Learn
To Promote Residual Affiliate Programs
Are
you a webmaster in need of additional income?
Are
you planning to set up an online business but
still don't have any product to sell?
If
so, affiliate marketing may be the best solution for you.
With affiliate marketing, you don't need to worry about selling
your own products. All you need to have
is a website with
sufficient content related to the products of
a certain online
company offering an affiliate program. By becoming a member
(ie: an affiliate) of the program, you can start earning
a certain amount of money right away!
Affiliate
marketing is a 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
on the application of the affiliate on the merchant's affiliate
program.
Affiliate
marketing promises a lot of benefits both for the
merchant and the affiliate - and 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. Most retailers will entice people
to become affiliates or members of their program by promising
great benefits like large commissions, lifetime commissions,
click through incomes, etc... But do
all these affiliate programs bring the same benefits to the
table? No.
Most
affiliate programs pay you, an affiliate, a one-time
commission for every sale or lead you bring to the
merchant's website. Commissions for this kind of affiliate
program are usually large, ranging from 15% to a high of about
60%. Other affiliate programs 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?
I can't
tell, for sure, if people are making a mistake by choosing
a high paying one-time commission affiliate program.
But I can definitely say that they are making a large mistake
if they ignore residual affiliate programs. Residual affiliate
programs indeed pay at a lower rate, but merchants offering
such programs generally pay you regular and ongoing
commissions for a single affiliate initiated sale!
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 residual affiliate program
pays $10 per month for every single affiliate initiated sale.
As an affiliate, we may be attracted to 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, you may be able to see that the second merchant is offering
you more opportunity to earn a larger amount of money.
Suppose
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? Yes, because
you get more money from these types of affiliate programs
in the long run! Will residual affiliate
programs work best for you? 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. # # # # #
SolveYourProblem.com : 2007
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