Are you a webmaster who needs extra income? Or would you plan to create an online business but still have no product to sell? If that is so, the best solution to your problems could be affiliate marketing.
For affiliate marketing, you're not going to have to worry about the goods that you sell. All that you need to have is a website with enough related content to the products of a certain online company that offers affiliate programs.
You will continue to earn a certain amount of money straight away by becoming a member, or by becoming an affiliate!
Affiliate marketing is some kind of business partnership between a distributor and his affiliates. Through affiliate marketing an affiliate decides to direct all traffic to the website of a retailer.
If that traffic is translated into some sort of action, such as a visitor buying an item on the merchant's website or a visitor to become the company's lead, the affiliate that directed the traffic will be paid.
Compensation may come in the form of either a percentage sales commission generated for the sales or a fixed fee predetermined upon the affiliate's application to the affiliate program of the merchant.
Promising many benefits for both merchants and affiliates, affiliate marketing has now become presently one of the most popular methods of online marketing. In reality, today almost every merchant or retailer site offers an affiliate program which anyone can participate.
Most retailers would attract people to become affiliates or participants of their program by offering great benefits such as large commissions, lifetime commissions, income-based clicks and many more benefits.
But all those affiliate programs would bring the same benefits?
Most affiliate programs will pay you a one-time commission, as an affiliate, for every purchase or lead you brought to the seller's website. Commissions for such affiliate programs are generally large, ranging from 15% to around 60%.
For each click or traffic you send to the merchant's site, other affiliate programs would pay you a fixed fee. Such programs often pay a smaller fee for each click, usually not receiving any larger than half a dollar.
However, the positive thing about this kind of program being that the visitor will not have to buy anything to get compensation from the affiliate.
Another type of affiliate program is the affiliate residual income scheme. Residual affiliate programs usually only pay a small percentage of sales commission for each sale to the merchant's site directed by the affiliate.
This fee often only comes in the sales commission range from 10 per cent to 20 per cent. Just because of that, many people ignore residual affiliate program and would prefer to opt for the high paid one-time affiliate fee program.
Do these people make a mistake, or do they take the right decision?
For sure we can't tell whether people make a mistake by selecting a high paid one-time contract affiliate program. But we can certainly say if they ignore residual affiliate programs they are making a big mistake.
Residual affiliate programs would actually pay at a lower rate, but merchants offering such programs would generally pay you regular and ongoing commissions on a sale initiated by a single affiliate sale!
Which means you get paid only once in a one-time commission programme and a regular and continuing fee for a residual program for the same effort you made in supporting a specific affiliate programme!
So, are the advantages of promoting residual affiliate programs now clearer for you? Or are they vague anyway? If they're still unclear then with this example let's make them a bit clearer.
Suppose two online merchants both offer services for web hosting on their websites. The first merchant provides a one-time commission type affiliate program which pays $80 for each sale initiated by a single affiliate.
The second merchant also provides an affiliate program, but this time a residual affiliate program which pays only $10 for each sale initiated by a single affiliate. As an affiliate, we may at once become attracted to what the first vendor is offering, as $80 is definitely much larger than $10.
But by thinking about things before actually getting into them one can see that the second merchant offers us more opportunity to earn a bigger amount of money.
If you've directed traffic to the merchant and turned it into a sale, the first merchant will pay you once for the sale you've started. But with the second merchant, for as long as the user you referred to the merchant continues to make use of the web hosting service, you'll get paid monthly.
That means you get paid monthly in residual affiliate programs for the same effort to get one customer to use the merchant's service while you only get paid once in a one-time commission type of affiliate programs.
So, are any residual affiliate programs worth encouraging? Definitely yes, because in the long term you are getting virtually more money from these types of affiliate programs! And could affiliate residual programs work best for you? Probably not, and maybe yes.
But with the advantages that residual affiliate marketing can bring, ignoring such programs would be truly good.