Residual Affiliate Programs
Copyright © Craig Warren
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
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 $80 for every single affiliate initiated sale.
The second merchant also offers an affiliate program,
but this time a residual affiliate program that pays
only $10 for every single affiliate initiated sale. As
an affiliate, we may get attracted at once at what the
first merchant is offering, as $80 is definitely a lot
larger than $10. 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
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.
It’s one thing to promote an affiliate
program and make good money. Start
generating multiple streams all at once