Creating Residual Incomes Streams Online
Fast affiliate marketing test.
See how you score. Here are two real world affiliate marketing success systems. Which is more rewarding in long run?
In one marketing scenario it takes 100 clicks to make a sale. The commission received once that sale is created is $100. The ordinary refund rate for the product is 5%. If you pay 80 cents per click what will be the return on your first $100 investment (did we mention there was maths involved?).
In the second marketing scenario it likewise takes a hundred clicks to make a sale. Each sale offers $100 commission but also gives a once a month residual commission of $10. As above, there’s a five percent refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
The answer for the first example is as follows : it costs you $80 to make one sale. So that suggests you made $20 but you must take off five pc for the refunds, leaving you with $19 net profit. 19% is a pretty good ROI. In the second example you’ll still receive $19 in commissions for that preliminary sale, but you also receive $40 for those four monthly sales. So if you add the $19 to the $40 then you have $59 which translates to a 59% return on investment a much more fascinating outcome!
Residual Income That Little Extra Goes a Long Way
If you were to look at any internet Affiliate’s marketing model you will soon learn the only time they will offer a product that pays only once for the first sale, is when they can leverage that sale into making more money. Many will provide a free report or special bonus if you buy this product through their affiliate link, where the leverage comes in is when they collect your opt in info from their landing-page, what they are giving you for free involved you giving something away for free too! A focused opt-in list is quite often worth up to five bucks per name each month to its owner. It is quite possible there will be a later upsell offered through an email that gives them the opportunity to earn yet another commission.
The heavy hitters in the affiliate marketing business trump that, they target promoting their products which initially provide an one-time commission but go on to offer an upsell to something that provides a monthly residual income, such as a membership site.
So the key to the best affiliate marketing opportunities isn’t about the original commission, it’s about what follows later . Are you able to blame them? In the example, it’s the difference between 19% and 59% investment return.
The Secret to Wealth is Multiple Streams of Residual Income
The famous Nile is the longest river on this planet. If you look down from space you can see it and its two main tributaries quite clearly. Yes, it is that large.
What you don’t see from outer space is all the thousands of small streams and brooks that run in to the Nile and there are countless thousands of them. All that water in those thousands of tiny streams is what converges to make the Nile so gigantic.
Look at your affiliate marketing efforts in the same way, by making residual streams of income , you are creating a river of wealth. You need to start by promoting several different products that have the benefit of creating residual streams of income. Stick to those and nothing else.
Finally you’ll be able to kick back and enjoy that stream of income. Imagine beginning every month off with a growing amount in the bank without doing a thing! Isn’t that the ideal scenario?
No more wondering how much your income will be and whether you will be ready to pay the bills that residual income will soon build up to be sufficient to cover the bills before you even start on any other income-producing projects.