With almost the entire population experimenting with some kind of online money making opportunity, success can truly be defined if your affiliate marketing business can create a long term opportunity for you in the form of residual or passive income.
Affiliate marketing is the process of promoting someone else’s products on your website and earning a commission through it whenever a sale occurs. The commissions usually range between 20-75% depending on the company you sign up with and the product you’re promoting. Most companies offer you the option of becoming affiliates. Some big examples are Click Bank, Amazon, Go Daddy and eBay.
What is residual income? Simply speaking, residual income is when your referral pays a fee that is part of some kind of monthly membership plan and you keep on earning commissions on that for as long as they remain members, meaning that you’re earning month over month with just one affiliate sale with no extra effort on your part. So, what do you need to do to build a residual income?
The best advice that I can give you is to stay committed. If you’re committed to becoming successful, you’ve already won the battle. Don’t let things like low traffic bother you too much when you’re just starting out. Stay focused and think about long term gains only.
There are two popular ways in which you can make a residual income through affiliate marketing – two tier affiliate programs and residual income programs.
Two tier affiliate programs are very popular in the affiliate marketing industry. These programs pay you whenever you make a sale on these programs and also pay you commissions on sales made by your affiliates. Sounds confusing? They work more or less like any multi level marketing company. What you’re doing is signing up with an affiliate program and then recruiting people under you so you’re earning money in two ways. If you recruit some super qualified affiliates, you can earn money without doing anything!
The other way to earn a passive income is through residual income affiliate programs. A good example is a website that sells membership based training programs. This means you are earning money every month whenever members are renewing their subscription. For example: GoDaddy, which offers web hosting, domain names etc and have a monthly plan.
Another good alternative is creating a multiple blogs or websites to promote different types of products. For ex: You can have one website that sells hosting plans, another selling cookware, and yet a third selling cameras.
With this information in hand, you can think about your residual income plan too.