Residual Affiliate Programs

If you're interested in learning more about affiliate programs and residual affiliate programs this article is for you. We'll go beyond the basics here (but we'll also cover those) to give you some useful information on affiliate programs.

If you're a website owner looking for another way to monetize your website or if you're interested in starting an online business but aren't sure how to store and ship products, affiliate marketing can be the best way to go. All you need to get started in affiliate marketing is a website – preferably one which features content relevant to the product or service you want to market. All you have to do is sign up with an affiliate program and carry a banner ad or a link to the merchant's website and you can start earning commissions the same day!

Affiliate Marketing.

Affiliate marketing is a business agreement between a merchant (a company with something to sell) and website owners like you (affiliates). You carry links or banners for the merchant and for every person you refer to the merchant through your site that makes a purchase, sings up for a mailing list or whatever other action the merchant has stipulated in the terms of the program, you'll be paid a commission. This may either be a percentage of the sale or a flat fee.

Affiliate marketing has benefits for both merchant and affiliate and thanks to its cost effectiveness for merchants, has become one of the most commonly used types of marketing on the web. A very large number of online businesses now have affiliate programs; however, not every affiliate program offers the same kind of benefits to affiliates.

Affiliate programs generally pay affiliates a commission for the sales or leads which are referred to the merchant. These commissions are higher than in other models of affiliate programs, being anywhere between 15% and 60%! There are others which pay affiliates for each referral made, whether or not a purchase is made. These pay much lower commissions, usually no more than 50 cents (and typically far less than this). However, it's a lot easier to get someone to click through a link than it is to get them to make a purchase.

There is also the option of residual income affiliate programs. These will pay a smaller commission (between 10% and 20% on average) than do other affiliate programs. Since the commission is lower, many people pass by these programs; is a sound decision or is there actually more to be made in these programs?

Keep reading to find out how these programs work, so you can draw your own conclusions.

Generate an Ongoing Commission.

There is no one right answer to this question; however, residual affiliate programs shouldn't be ignored. While the commissions are lower, there tend to be ongoing commissions for a single referral over time; you can end up making far more income from these programs.

Lets take a closer look at how residual affiliate programs work.

Residual Affiliate Programs.

Take the example of two different merchants who are selling web hosting services. One merchant has an affiliate program which pays the affiliate $100 for each sale they refer. The other merchant has an affiliate program which offers only $20 per sale referred, but is a residual program. Now of course, $100 is a lot more money than $20, but you may want to take the long view here, since you'll earn that lower commission each time a customer you have referred renews their service. With the first merchant, you'll get just the onetime fee. However, the second merchant's affiliate program allows you to receive regular payments for as long as their customer continues to use their service – over time this can really add up.

Are residual affiliate programs a good choice then? Generally speaking, yes. These programs offer more income over the long run. However, we can't tell you if they are necessarily the right choice for you. Nonetheless, they are certainly worthy of your consideration.

Now that you know a little more about affiliate programs and how they work, you'll be able to make a better informed decision.