In the first eventuality it takes 100 clicks to make a sale. Each sale pays $100 in commissions. The refund rate is a low five pc. At $.80 per click, what’s going to be the return on your first $100 investment?
In the second promoting eventuality it likewise takes a hundred clicks to make a sale. Every sale offers $100 commission but also gives a monthly residual commission of $10. As above, there is a 5% refund rate and the average length of the subscription is four months. Now, if you pay $.80 per click as in the 1st example, how much will you make now for your $100 investment?
In the first affiliate marketing example it would cost $80 to make one sale.
$100 – $80 = $20 less five percent refund rate equals $19 net profit. That’s a pretty good 19% return on your advertising investment.
In the second, same result for the initial sale – but the NET PROFIT is much , much more electrifying thanks to the monthly residual income! Here you would get $19 for the up-front sale and a further $40 over a period. That is $59 net profit for a 59% ROI.
Residual Income – The Difference that Makes a Difference
If you were to examine any Super Affiliate’s promoting model you will soon find out the only time they are going to offer a product that pays only once for the first sale, is when they can leverage that sale into making additional cash. Many will supply a free report or special bonus if you are going to buy this product thru 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 concerned you giving something away for free too! A focused opt-in list is quite often worth up to five greenbacks per name each month to its owner. It is quite possible there will be a later upsell offered via an e-mail that gives them the opportunity to earn yet one more commission.
The heavy hitters in the affiliate marketing business trump that than that, they focus on promoting their products which initially offer an one off commission but go on to offer an upsell to something that provides a monthly residual income,eg a membership site.
So the key to the best affiliate promotion opportunities isn’t about the original commission, it’s about what follows later . Can you blame them? In the above example, it’s the difference between 19% and 59% ROI.
The Secret to Wealth is Multiple Streams of Residual Income
The longest brook in the world is the Nile. The only real way you can appreciate the scale of the Nile is by seeing it from outer space. It is grand. What you do not see when you look down from your rocket is that the Nile is what it is because it’s fed by thousands of small tributaries. Thousands of them. This huge Brook only exists because of all the little tributaries and streams that run into it.
By understanding that many tiny streams of income can build to form a river of wealth you should take your affiliate marketing attempts to a higher level. Start by promoting products that pay residual monthly income on top of a preliminary commission. Don’t be tempted by other products, these are the ones that will create wealth in the longer term. After only a few months you will see these little streams of income turn into a significant flood of income. The beauty of residual monthly income is that you never start a month with nothing in the bank. Imagine that!
You are never truly beginning over or beginning from zero and hoping beyond hope that you sell something this month.