Advantages of Residual Affiliate Programs

Advantages of Residual Affiliate Programs

by Jason

Are you are a webmaster in need of supplemental income, or are you perhaps planning to form an Internet company but do not have a product? If you are in either category, the best solution for your dilemma may be affiliate marketing. This strategy will eliminate your worries regarding products, as all you will need to start is a website featuring suitable content featuring the products offered by another company.

As an affiliate marketer, you will agree to drive traffic to another merchant’s website. In most cases, a percentage of that traffic will convert to sales for which you will be compensated. The latter may be a fixed rate per sale that has been predetermined between you and the merchant, or a specific percentage of the total amount of each sale. In this way, you can begin making money at once.

Affiliate marketing is associated with numerous benefits for both parties and as a result has become a favorite marketing method of many entrepreneurs. For this reason, virtually all retailers and merchants offer some type of affiliate program to other online marketers. Although numerous merchants entice individuals to become members or affiliates of their programs by promising large commissions, or commissions that last a lifetime if the customer buys in the future, not all plans are associated with the same benefits.

Most affiliate programs compensate the merchants with whom they are associated with commissions ranging from 15% to 60%. Others, as previously mentioned, pay a fixed rate for traffic sent from the affiliate marketer. Such programs may also pay a small fee for each click through, which is typically about $.50 per click. However, the benefit with a program of this type is that the affiliate will be compensated regardless of whether or not the shopper makes a purchase.

Residual income affiliate programs are also available. Such programs typically pay a 10% to 20% sales commission to the affiliate marketer responsible for sending the customer to the merchant’s site. Because the commissions with such programs are not typically high, they are ignored by some Internet marketers. However, for many people this is a mistake. Ignoring residual affiliate programs is essentially ignoring ongoing commissions for affiliate-initiated sales. Although residual programs pay less than other affiliate arrangements, the ongoing commissions more than compensate the affiliate marketer for the sales.

For example, a merchant may offer his or her affiliate marketers $80 for every visitor that converts to a paying customer. This amount of money will certainly appear attractive at first. However, a merchant who offers only $10 per sale, but whose program is a residual affiliate program, is essentially offering more long-term income for the affiliate marketer than the merchant in the first example.

For instance, if a person you have directed to the merchant’s web hosting service site becomes a paying customer, you will be compensated only one time by the first merchant. However, with the second merchant, you will be compensated for the duration of the customer’s association with the merchant’s program. The effort is the same in either case; however, with the second merchant the payments will be ongoing, producing long-term income. It should now be clear to you that residual affiliate programs are well worth promoting.

Source by John Paul Richards

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