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Residual Affiliate Programs Are Really Worth Promoting

Affiliate marketing is a business association that is established between a vendor and his affiliates. Under the conditions of this business arrangement, an affiliate is required to guide traffic to a merchant’s web page with the objective of converting those visitors into potential customers. If a visitor orders something from the merchant’s web page, or a visitor becomes a prospect for the company, the affiliate who sent those people to the vendor will be paid.

A residual affiliate program works almost in the same way, except that the vendor’s goods or service usually consist of a monthly membership fee, for which the affiliate will get a regular monthly payment. This payment will be paid for as long as the end user remains subscribed to the vendor’s service. This sort of payment is called residual income, because it keeps recurring for many months, or even years.

Offering a host of benefits for both the merchants and affiliates, affiliate marketing has turned out to be one of the hottest online marketing programs currently available. Actually, just about every merchant or retail website today has an affiliate program that any one can sign up for. Many vendors encourage people to become involved with their program by offering substantial benefits such as big commissions, recurring commissions, click through payments and quite a few other incentives. But, will each affiliate program return the same benefits?

A lot of affiliate programs pay their affiliates a single commission for each purchaser or prospect they introduce to the trader’s web page. Commissions for this type of affiliate program are usually fairly big. Other affiliate programs pay a set fee for each click through or prospect that the affiliate introduces to the trader’s website. This type of program often pays a very small fee for each click, generally not being much more than fifty cents. However, the best thing about this type of program is that there is no need for the visitor to buy anything for the affiliate to earn a commission.

A residual affiliate program generally pays a smaller commission for each consumer that is introduced by the affiliate to the trader’s web page, so that membership fees can be kept reasonably priced. For this reason, a lot of marketers ignore residual affiliate programs and prefer instead to join the more rewarding single commission affiliate programs. Are these marketers making a huge mistake, or are they making the correct choice?

Actually that is impossible to accurately determine, because it all depends on how many sales per month an affiliate can make. It is fairly obvious though that a lot of marketers are making a huge mistake by ignoring residual affiliate programs entirely. Many of these sorts of affiliate programs don’t pay large commissions, but vendors offering those types of programs will pay monthly and continuous commissions for one affiliate initiated sale! Therefore, for the same amount of work performed in advertising a specific affiliate program, you only get paid once in a single commission program, or you will earn a monthly recurring commission from a residual program!

If the customer keeps paying for the merchant’s service for many months the commission could amount to hundreds of dollars, and actually, there are a number of subscription based affiliate programs with high membership dues that do return a sizable monthly pay check to the affiliate.

Imagine that there are a couple of online vendors that are both selling web hosting services on their internet sites. The first vendor offers a single commission type of affiliate program that pays a set commission for each sale that the affiliate makes. The other vendor offers a residual affiliate program, that only pays half as much as the first trader pays for an affiliate initiated sale. One might be interested by the first vendor’s offer, but after considering the deal more closely, one soon realizes that the second trader is providing a chance to earn a monthly income that will bring in more earnings after several short months.

Therefore, the fact is that for the same amount of work it requires to convince one customer to purchase the trader’s service, you earn a commission each month from a residual affiliate program. So if you are asking yourself whether a residual affiliate program might be worth joining, then the answer would definitely be yes, because you will earn more commissions from these kinds of affiliate programs over a period of time! Whether residual affiliate programs will be more effective for you or not really depends on the sort of goods that you want to market. However, when one takes into account the advantages that residual affiliate marketing has, it would definitely be foolish to completely disregard that kind of program.

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