If you want to have additional income and is planning to set up an online business but you don’t know how to go about doing it, then affiliate marketing may be the best solution. 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. You don’t even need to worry about the products you have to sell. By becoming a member of the program, or by becoming an affiliate, you can start earning a certain amount of money right away!
In Affiliate marketing, the relationship between merchant and his affiliates is established by having the affiliate to agree to direct some traffic to a merchants website. If that traffic is converted into some kind of action, like a visitor purchasing a product on the merchants 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 merchants affiliate program.
Affiliate marketing has become one of the most popular online marketing methods today Promising a lot of benefits both for the merchants and the affiliates. 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. The question lies in would all these affiliate programs bring off the same benefits
About all affiliate programs would pay you, as an affiliate, a one-time commission for every sale or lead you brought to the merchants internet site. Commissions for these sort of affiliate programs are commonly huge, 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 merchants site. Programs like this frequently pay a smaller fee for every click through, usually not getting anymore than half a dollar. The advantageous thing about this kind of program, however, is that the visitor will not have to buy anything in order for the affiliate to get compensated.
A different type of affiliate program is the residual income affiliate program. for every sale directed by the affiliate to the merchants site Residual affiliate programs will normally pay only a lowly percentage of sales commission. 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?
There is no direct statistics showing if people are making a mistake by choosing a high paying one-time commission affiliate programBut for sure, we 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!
Let’s clarify the concept mentioned about residual affiliate program with this examples. say two online merchants both offering web hosting services on their sites And the first merchant offers a one-time commission type of affiliate program that pays $50 for every single affiliate initiated sale while 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. Obviously, an affiliate, will be attracted at once at what the first merchant is offering, as $50 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.
You’ll get paid once by the first merchant for the sale you have initiated if you have directed traffic to the merchant and it converted into a sale. However, with the second merchant, youll get paid monthly for as long as the customer you have referred to the merchant continues to avail of the web hosting service. In other words, you get paid monthly in residual affiliate programs while you only get paid once in a one-time commission type of affiliate programs. For the same effort of getting one customer to avail of the merchants service,
So, are residual affiliate programs worthy promoting for? Unquestionably yes, because you virtually generate more money from these types of affiliate programs in the long run! And would residual affiliate programs work best for you? In all likelihood yes and no. Its hard to tell. But with the benefits that residual affiliate marketing can provide, it would really be foolish to ignore such program
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