Are Residual Affiliate Programs Worth Promoting?

Residual Affiliate Program
Residual Affiliate Program

Are you a website owner who wants to additional income? Or are you thinking about setting up an online business but you still do not have any products to sell? If you do, then you should join affiliate-marketing industry – probably the best solution for your issues.

If you are involved with affiliate marketing, you will thrive online – make money online – even if you do not have any products to sell.

You simply need a website with good content relevant to the products of a certain merchant offering affiliate programs.

By joining the affiliate program and becoming an affiliate, you can immediately start making money right away!

What is Affiliate Marketing?

In short, it is a revenue sharing partnership between an advertiser, or the merchant, and the publisher, or the affiliate. (Check out my article on What is Affiliate Marketing to learn more.)

How it Works?

In affiliate marketing, an affiliate agrees to direct traffic to the merchant’s website. If that traffic converts into some sort of action – makes a purchase on the merchant’s website or becomes a lead for the company – the affiliate receives a commission.

This compensation is a certain percentage of sales commission or a fixed amount of fee pre-determined on the contract of the affiliate program.

With all the great benefits, affiliate marketing has become one of the most popular methods of online marketing today. In fact, today, almost every merchant (retailer) site offers an affiliate program for an interested to join.

Most retailers even encourage people to become their affiliates or members of their program by promising great benefits such as big commissions, click through commissions, lifetime commissions, and whole other forms of benefits.

Related article: Top 5 Reasons Why You Will Fail in Affiliate Marketing

Does all These Affiliate Programs Offer the Same Benefits?

  1. Most affiliate programs will pay you (affiliate) a one-time commission for every sale or lead that you bring to the merchant’s website. In this type of affiliate programs, the commissions are usually higher, ranging from 20% and up to 60% commission rate.
  2. Other type of affiliate programs will pay you a fixed amount for every click-through or traffic you direct to the merchant’s website. However, unlike the first type of affiliate program, the affiliate is paid a smaller fee for every click-through his/her referral makes. The amount is usually not more than $0.5 to $3 dollars. However, the best thing about this program is that the visitor will NOT have to purchase anything for the affiliate to get compensated.

Related article: 4 Different Types of Affiliate Marketing Revealed

Residual Affiliate Program

In addition to these two types of affiliate program, there is residual affiliate program.

The residual affiliate program pay only a small percentage of sales commission – in the range of 10% to 20% per sale – for every sale directed by the affiliate to the merchant’s site.

Because of this, many people ‘ignore’ residual affiliate program and would rather join high paying one-time affiliate program.

Related article: 3 Easy Ways for Newbies to Start in Affiliate Marketing

So, Are People Making a Mistake or Making the ‘Right’ Decision?

I cannot really tell for sure if people are making ‘wrong’ decision to enter only into high-paying one-time commission affiliate program. However, I can surely say that they are making a huge mistake ignoring ‘residual affiliate programs.’

Yes, it is true that in residual affiliate programs, you will only get paid at a lower rate. However, merchants who offer these types of affiliate programs will also pay you regularly. The commissions would not be one-time, but rather on going even for a single affiliate generated sale!

Related article: Search Engine Optimization for Affiliate Marketers

That means, for the same effort and time you spend promoting a particular affiliate program, you get paid regularly and ongoing commission through a residual program as opposed to getting paid only once in a high-paying affiliate programs!

So are you clear of the benefits of residual affiliate programs? Or, do you still have vague knowledge about it?

If they are still vague, then why not make them a little bit clearer with a help of an example.

Let’s say, there are two web merchants both offering web hosting services through their site.

  1. The first merchant offers a one-time commission type of affiliate program that pays $60 for every single sale generated by an affiliate.
  2. The second merchant, on the other hand, offers a residual affiliate program that pays only $10 for every single sale generated by an affiliate.

Related article: Over Achieving Your Way to Super Affiliate Stardom

As an affiliate, it is not surprising to get attracted immediately to the first offer, because $60 is definitely a higher commission than $10.

But if you think things over for a while before jumping blindly, you may actually able to see clearly that the second merchant has the best offer for you as it offers you more chance to earn a larger amount of money.

Let us say, you have sent traffic to the merchant website and they convert into a sale. You will only get paid once by the first merchant. However, with the second merchant, you will get paid monthly for as long as your referral continues to use their web hosting service.

For the same effort you invest in getting a traffic to use the service offered by these two merchants, you get paid only once in a one-time commission type of affiliate program while you get paid regularly (monthly) in residual affiliate programs.

Related article: How YOU Can Become a Super Affiliate

So, Are Residual Affiliate Programs Worth Promoting?

Absolutely YES! In the long-run, you will make money from these types of affiliate programs.

Would Residual Affiliate Program Work Best for You?

Well, it depends. Maybe it would, maybe it will not. It is something I cannot personally tell. But if you look at all these great benefits of residual affiliate marketing program, it would be really ‘wrong’ to ignore such programs.

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