Why You Should Promote Residual Affiliate Programs
By William R. Nabaza of http://www.Nabaza.com/directory.htm, Mon Jan 2nd
Are you a webmaster in need of additional income? Or are youplanning to set up an online business but you still don't haveany product to sell? If so, marketing may be the bestsolution for your problems. With marketing, you won'tneed to worry about the products you have to sell. All you needto have is a website with sufficient contents that are relatedto the products of a certain online company offering affiliateprograms. By becoming a member of the program, or by becoming anaffiliate, you can start earning a certain amount of money rightaway! Affiliate marketing is some sort of business relationshipestablished between a merchant and his affiliates. In affiliatemarketing, an agrees to direct some traffic to amerchant's website. If that traffic is converted into some kindof action, like a visitor purchasing a product on the merchant'swebsite or a visitor becoming a lead for the company, theaffiliate who directed the traffic will be compensated.Compensation may take the form of either a percentage salescommission for the sales generated or a fixed fee predeterminedupon the application of the on the merchant'saffiliate program. Promising a lot of benefits both for the merchants and theaffiliates, marketing has become one of the mostpopular online marketing methods today. In fact, almost everymerchant or retailer site today offers an program thatany one can join into. Most retailers would entice people tobecome affiliates or members of their program by promising greatbenefits like large commissions, lifetime commissions, clickthrough incomes and a lot of other benefits. But would all theseaffiliate programs bring off the same benefits?
Most programs would pay you, as an affiliate, aone-time commission for every sale or lead you brought to themerchant's website. Commissions for this kind of affiliateprograms are usually large, ranging from 15% to a high of about60%. Other programs would pay you a fixed fee forevery click through or traffic you send to the merchant's site.Programs like this often pay a smaller fee for every clickthrough, usually not getting any larger than half a dollar. Thegood thing about this kind of program, however, is that thevisitor won't have to purchase anything in order for theaffiliate to get compensated. Another type of program is the residual incomeaffiliate program. Residual programs usually pay onlya small percentage of sales commission for every sale directedby the to the merchant's site. This commission oftencomes only in the range of 10% to 20% sales commission. Becauseof this, many people ignore residual program and wouldrather opt for the high paying one-time commission
affiliateprogram. Are these people making a mistake, or are they makingthe right decision? We can't tell, for sure, if people are making a mistake bychoosing a high paying one-time commission program.But we can definitely say that they are making a large mistakeif they ignore residual programs. Residual affiliateprograms would indeed pay at a lower rate, but merchantsoffering such kind of programs would generally pay you regularand ongoing commissions for a single initiated sale!That means, for the same effort you made in promoting aparticular program, you get paid only once in aone-time commission program, and a regular and ongoingcommission for a residual program! So, are the benefits of promoting residual programsclearer to you now? Or are they still vague? If they are stillvague, then let's make them a bit clearer with this example. Suppose there are two online merchants both offering web hostingservices on their sites. The first merchant offers a one-timecommission type of program that pays $80 for everysingle initiated sale. The second merchant also offersan program, but this time a residual programthat pays only $10 for every single initiated sale. Asan affiliate, we may get attracted at once at what the firstmerchant is offering, as $80 is definitely a lot larger than$10. But by thinking things over before actually getting intothem, one may be able to see that the second merchant isoffering us more opportunity to earn a larger amount of money. Supposed you have directed traffic to the merchant and itconverted into a sale, you'll get paid once by the firstmerchant for the sale you have initiated. But with the secondmerchant, you'll get paid monthly for as long as the customeryou have referred to the merchant continues to avail of the webhosting service. That means that for the same effort of gettingone customer to avail of the merchant's service, you get paidmonthly in residual programs while you only get paidonce in a one-time commission type of programs. So, are residual programs worth promoting? Definitelyyes, because you virtually get more money from these types ofaffiliate programs in the long run! And would residual affiliateprograms work best for you? Probably not, probably yes. It isnot really for me to tell. But with the benefits that residualaffiliate marketing can provide, it would really be unwise toignore such programs. About the author:William Nabaza of http://www.Nabaza.com specializes in domains,webhosting, webmaster's tools, netpreneur's articles andresources. Stands out as a freebie provider, businessopportunity provider and the like. Visit his site athttp://www.nabaza.com or contact him directly atwilliam@nabaza.com more free articles here:http://www.nabaza.com/resources.htm
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