Affiliate Programs and Recurring Comissions

The concept of affiliate marketing and programs are today something very well known and popular all through the waves of the internet

. If you make a visit to the website of any medium sized or small company or business that sells a product or services. There is a very good chance they will have a section for affiliates and how to earn money promoting their services. Fact is, even amazon gives webmasters an opportunity to promote their products and earn a certain comission for sales sent their way.

Almost all such programs today pay the marketer or website owner a percentage of the referred sale of the product or service alternatively a fixed comission. Some programs such as web hosting services can sometimes pay a comission several times larger than the average monthly cost, while fixed products such as a software purchase can pay even up to 75-80% of the sale.

This can seem lucrative, and if the affiliate marketer makes plenty of sales - it of course would be. However there are also another smaller group of affiliate programs, a group less known. These are the programs paying a residual comission. You could for instance earn 20% of each and every month the referred customer remains with a web hosting service you promote.

While you would more money imidiately and quickly with a traditional affiliate program promoting a web hosting service. A program paying percentage residual comissions would make that customer yours "for life", or more properly put - as long as he remains with that hosting company.

With services and products that tend to lead to many repetive renewals or purchases this can be very lucrative. While there are programs that can pay a higher one time comission than a program paying residual income. With such a standard program once the comission is received - you are done. You now have to find another customer if you want to gain additional income.

The benefit with a program paying residual income, is that if the product is something like a web hosting service where the customers tend to stay for longer periods of time. By constantly adding new customers your income consistently build and increase to generate a steady income.

As an example imagine a web hosting service that charges $15 per month and you earn a 25% comission. This means a comission of $3,75 each month for this customer. Initially this might not seem like much, but if you've recruited 20 people this would be a comission of $75 per month. If these then remain with the hosting company for years, you would be getting this comission each month for years, without having done anything except for the initial recruiting in the beginning.

Of course some people will cancel their hosting sooner, and some will remain longer. But with a service such as web hosting (or other subscription based service that they tend to need for longer periods of time) many or perhaps even most tend to remain with the company for an extended time.

By then constantly adding new customers, not staying at the 20. You can easily see how your earning can consistently increase while the amount of work remains the same. There are times when traditional affiliate programs can be preferred, the comissions might be greater quickly. But with a traditional program you always have to sustain the same amount of quality and efforts, or the earnings will cease. With a good residual program there is the potential for consistent increased earnings, with the same amount of quality work.

In many cases you can even find two very similar or same type of products from different companies. Both paying percentage comission but one residual and one fixed. In such cases it can even be a shame to consider the many people who promote the fixed comission product, not knowing there exists a similar product but paying residual commissions.

Affiliate Programs and Recurring Comissions

By: Patrik Nilsson

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