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Wednesday, 7 September 2011

Affiliate Marketing Point Five

Affiliate Marketing Point 5:  Residual Programs Are Often Best

Affiliate Programs: One-Time or Residual?

The difference between one-time commission affiliate programs and residual affiliate programs is astronomical – in terms of income. Essentially, a one-time commission affiliate program pays you one commission, one time – upon the initial sale. Residual programs, however, continue to provide you with an income, either for the life of the customer or for a set term

When choosing between one-time commission programs and residual programs, always choose residual programs. These allow you to make one sale to a customer, and then to profit from that customers repeat or ongoing business with the company, usually for the life of the customer/business relationship.

Where you may make $100 for a one-time commission, with a residual program, you may make $100 per month, every month, just from making one sale. The choice is obvious – residual programs typically provide you with more income for less work.

Residual programs that pay for the life of the customer are better than residual programs that only pay for a set term. You want to have the income from one sale for as long as possible.

Generally, a residual income potential exists when you sell services, such as webhosting, where the customer pays a monthly fee for the service. Every month that the customer pays the fees, you earn a commission. However, when the customer stops paying the fee, you no longer receive a commission for that customer.

For this reason, it may be best to look for services that are vitally needed by your potential customers. For instance, anyone who does business on the Internet has a need for webhosting, and they don’t want their site to go down, so the chances are good that this will be a very long residual income for you.

Telephone services also provide a nice residual income. Everyone needs their telephone, and most need long distance services. If you are promoting a company that provides such services at great prices, then again, this could provide a very nice long term residual income for you.

However, services that are not long term in nature can also be good if the commission is high enough. For instance, membership websites that provide customers with some type of course or learning experience may provide you with a residual income while the customer is a member of the site. However, once the customer feels that they have gleaned all that they can from that membership site, they will most likely cancel their membership, which cancels your residual income from that customer.

Certain types of products can also provide you with long term or life time residual income. Health care related products, such as vitamins and medication are good examples of this. Also, many companies give life time commissions to the affiliate for every purchase the customer makes – from the very first purchase – even for different products that the company sells.

Keep these things in mind when you are searching for programs to promote. Residual is better than one-time, and life time residual is better than termed residual. Look for products or services that will provide you with life time residual income.

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