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A Second Look at Residual Affiliate Programs

By Elijah Kim
Mar 23, 2009
With many and various businesses setting off in cyberspace, more and more people are enticed to try this new virtual means of trade. With practically less barriers of entry, people can simply register for free, promote and market a product, and earn profit with minimal capital investment.

With affiliate marketing, a form of Internet marketing, people won't need to worry about what products to sell. All they need is a website with sufficient content related to the products of a certain online company offering affiliate programs. By becoming a member of the program, or by becoming an affiliate, they can start earning a certain amount of money right away!

In affiliate marketing, an affiliate agrees to direct some traffic to a merchant's website. This means directing visitors from an affiliate's website to the website of a merchant where the actual selling takes place. The traffic is made by the visitor clicking the affiliate link. If the traffic is converted into an actual sale, the affiliate who directed the visitor earns a commission or a certain percentage of the sale. The affiliate may also receive a fixed fee instead of a percentage commission. The fixed fee is predetermined upon the application of the affiliate on the merchant's affiliate program

Most retailers entice people to become affiliates or members of their programs by promising great benefits like large commissions, lifetime commissions, click-through incomes and a lot of other benefits. In most affiliate programs, an affiliate is paid a one-time commission for every sale or lead an affiliate 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 pay an affiliate a fixed fee for every click-through or traffic an affiliate sends 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 does not have to purchase anything in order for the affiliate to get compensated.

One type of affiliate program that is sometimes overlooked by affiliate marketers is the residual income affiliate program. Because it usually pays relatively low percentage of sales commission for every sale directed to the merchant's site, many affiliates ignore this program. They would rather choose the high paying one-time commission program because the commission offered through residual affiliate program only ranges from 10% to 20%.

If you are one of the affiliates ignoring residual affiliate program, you may want to take a look at some of the advantages provided by this program. 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!
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