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Promote residual affiliate programs
By John Ugoshowa

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, marketing may be the best solution for your problems. With 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 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 marketing, an 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 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 on the merchant's program.

Promising a lot of benefits both for the merchants and the affiliates, marketing has become one of the most popular online marketing methods today. In fact, almost every merchant or retailer site today offers an 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 programs bring off the same benefits?

Most 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 programs are usually large, ranging from 15% to a high of about 60%. Other 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 to get compensated.

Another type of program is the residual income program. Residual programs usually pay only a small percentage of sales commission for every sale directed by the 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 program and would rather opt for the high paying one-time commission 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 program. But we can definitely say that they are making a large mistake if they ignore residual programs. Residual 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 initiated sale! That means, for the same effort you made in promoting a particular 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 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 program that pays $80 for every single initiated sale. The second merchant also offers an program, but this time a residual program that pays only $10 for every single 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 programs while you only get paid once in a one-time commission type of programs.

So, are residual programs worth promoting? Definitely yes, because you virtually get more money from these types of programs in the long run! And would residual programs work best for you? Probably not, probably yes. It is not really for me to tell. But with the benefits that residual marketing can provide, it would really be unwise to ignore such programs.


John Ugoshowa. For more information about affiliate marketing see the affiliate marketing section of The Free Ad Forum at: http://www.thefreeadforum.com/infowizards/CAT/Affiliate-Marketing_68_1.html

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