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Affiliate Marketing-Selling
Without Inventory |
Are you a webmaster in need of
additional income? Or are you planning to set up an online business but you
still don't have any product to sell? If so, affiliate marketing may be the
best solution for your problems. With affiliate marketing, you won't need to
worry about the products you have to sell. All you need to have is a website
with sufficient contents that are related to the products of a certain
online company offering affiliate programs. By becoming a member of the
program, or by becoming an affiliate, you can start earning a certain amount
of money right away! Affiliate marketing is some sort of
business relationship established between a merchant and his affiliates. In
affiliate marketing, an affiliate agrees to direct some traffic to a
merchant's website. If that traffic is converted into some kind of action,
like a visitor purchasing a product on the merchant's website or a visitor
becoming a lead for the company, the affiliate who directed the traffic will
be compensated. Compensation may take the form of either a percentage sales
commission for the sales generated or a fixed fee predetermined upon the
application of the affiliate on the merchant's affiliate program.
Promising a lot of benefits both for the merchants and the affiliates,
affiliate marketing has become one of the most popular online marketing
methods today. In fact, almost every merchant or retailer site today offers
an affiliate program that any one can join into. Most retailers would entice
people to become affiliates or members of their program by promising great
benefits like large commissions, lifetime commissions, click through incomes
and a lot of other benefits. But would all these affiliate programs bring
off the same benefits?
Most affiliate programs would pay you, as an affiliate, a one-time
commission for every sale or lead you brought to the merchant's website.
Commissions for this kind of affiliate programs are usually large, ranging
from 15% to a high of about 60%. Other affiliate programs would pay you a
fixed fee for every click through or traffic you send to the merchant's
site. Programs like this often pay a smaller fee for every click through,
usually not getting any larger than half a dollar. The good thing about this
kind of program, however, is that the visitor won't have to purchase
anything in order for the affiliate to get compensated.
Another type of affiliate program is the residual income affiliate program.
Residual affiliate programs usually pay only a small percentage of sales
commission for every sale directed by the affiliate to the merchant's site.
This commission often comes only in the range of 10% to 20% sales
commission. Because of this, many people ignore residual affiliate program
and would rather opt for the high paying one-time commission affiliate
program. Are these people making a mistake, or are they making the right
decision?
We can't tell, for sure, if people are making a mistake by choosing a high
paying one-time commission affiliate program. But we can definitely say that
they are making a large mistake if they ignore residual affiliate programs.
Residual affiliate programs would indeed pay at a lower rate, but merchants
offering such kind of programs would generally pay you regular and ongoing
commissions for a single affiliate initiated sale! That means, for the same
effort you made in promoting a particular affiliate program, you get paid
only once in a one-time commission program, and a regular and ongoing
commission for a residual program!
So, are the benefits of promoting residual affiliate programs clearer to you
now? Or are they still vague? If they are still vague, then let's make them
a bit clearer with this example.
Suppose there are two online merchants both offering web hosting services on
their sites. The first merchant offers a one-time commission type of
affiliate program that pays for every single affiliate initiated sale. The
second merchant also offers an affiliate program, but this time a residual
affiliate program that pays only for every single affiliate initiated sale.
As an affiliate, we may get attracted at once at what the first merchant is
offering, as is definitely a lot larger than . But by thinking things over
before actually getting into them, one may be able to see that the second
merchant is offering us more opportunity to earn a larger amount of money.
Supposed you have directed traffic to the merchant and it converted into a
sale, you'll get paid once by the first merchant for the sale you have
initiated. But with the second merchant, you'll get paid monthly for as long
as the customer you have referred to the merchant continues to avail of the
web hosting service. That means that for the same effort of getting one
customer to avail of the merchant's service, you get paid monthly in
residual affiliate programs while you only get paid once in a one-time
commission type of affiliate programs.
So, are residual affiliate programs worth promoting? Definitely yes, because
you virtually get more money from these types of affiliate programs in the
long run! And would residual affiliate programs work best for you? Probably
not, probably yes. It is not really for me to tell. But with the benefits
that residual affiliate marketing can provide, it would really be unwise to
ignore such programs.
Article Source:
111Articles.info
About the Author
Cliksource is a resource site for
those looking to maximize theiraffiliate
marketing or need affiliate
marketing advice. Visit us or check out our
affiliate marketing technique
articles at cliksource.
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