Online Residual Income
Copyright © Patricia Brucoli
Affiliate marketing is such an ingenious concept, really. It is very advantageous for both the affiliate and the affiliate program. To those just starting out with their dream to have their own business, but no real talent or creativity yet, it is the perfect ‘foot in the door’.
What is an affiliate program? An affiliate program is a company that has a product and/or service to sell. They offer to let affiliates join the program and provide them with their own identification or member number, give them personalized marketing tools, such as a website, ’splash page’, banners, and sales copy, etc.Â
The affiliate is not an employee, but is a private contractor in a sense. As such, they are not paid a salary and are responsible for the cost of their advertising efforts done on behalf of the program. If the affiliate makes a sale, they are given a percentage as a commission.
The affiliate program provides front-end sales and customer support, payment processor, inventory, order fulfillment, shipping and handling and back-end customer support, (refunds, etc.). What they get in exchange for allowing the affiliate to offer the company’s product and paying them a commission, is that they are gaining greater exposure - free advertising and marketing which is paid for by the affiliate.
In addition to the affiliate having a product to sell and receiving a commission, the affiliate is also usually eligible to receive commissions for referrals of other affiliates to the program. They would make sometimes an up-front bonus and/or monthly residual income from this referral, as well as second-tier commissions when their referral makes sales or referrals.Â
Sometimes this arrangement is referred to as multi-level marketing, for obvious reasons. Most legitimate companies that are sales related have this same type of structure. This is a win-win situation for all concerned.
This residual income is different from a one-time sale of the product or service itself. The residual income concept is particularly conducive to ‘building’ a business, in that you can continue to derive income from work that you do once.
Of course as with anything, there will be recidivism, so this doesn’t mean you can ever rest on your laurels. You must continue to take consistent action in order to maintain whatever level of income you require.
Then with this little internet residual income machine running, you can possibly then reach a level of creativity and produce your own product - and maybe even your own affiliate program!
About the Author
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Patricia Brucoli can help you find theÂ
best online residual income opportunities
http://www.the3rdpartynetx.com/
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