Are you one of the folks that need to make some residual income to ease monetary pressures that you could be under due to this recession, and perhaps in the process you would like to accumulate some real wealth? Here is a quick test on affiliate marketing. Let’s see how you do. The following are 2 affiliate marketing methods, you choose which one is better. Let’s see if you can pick which one will be more moneymaking?
In one selling eventuality it takes one hundred clicks to make a sale. The commission received, once that sale is made, is $100. The ordinary refund rate for this product is five percent. If you pay 80 cents per click what will be the return on your initial $100 investment (did we mention there had been mathematics involved?).
In the second selling eventuality it in a similar way takes a hundred clicks to make a sale. Every sale offers $100 commission but also gives a monthly residual commission of $10. As above, there’s a 5% refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
OK, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five percent refund rate thus ending up with an ROI of $19. That is not a bad investment. Now, in the second example you get the same result for the sale — $80, but your net profit is a great deal more galvanizing due to that four months worth of residual income. You would still get the $19 ROI on your initial $100 investment, but here you make that additional $40 a 59% investment return.
Residual Income That Little Additional Goes a Great Distance
You can always tell an excellent affiliate’s selling model the one time they will offer something similar to in the 1st example above, they’re going to find a method to leverage that sale. A lot of them will offer a free report, a bonus, or some kind of review simply as a way of obtaining your opt in info. They give worth for price and that’s where the leverage comes in. A focused opt in list could be worth up to five greenbacks a month to the list owner. The key is to offer an upsell later , which naturally gives the chance to earn another commission.
The heavy hitters in the affiliate marketing business play a trump than that, they concentrate on promoting their products which initially supply an one off commission but go on to offer an upsell to something that gives a monthly residual income,eg a membership site. So that the key to the best affiliate promotion opportunities isn’t about the first commission, it’s about what follows later on. Can you blame them? In the example above, it’s the difference between 19% and 59% return on investment.
The Secret to Prosperity is Multiple Streams of Residual Income
The famous Brook Nile is the longest stream on this planet. If you look down from space you can see it and its 2 main tributaries quite clearly. Yes, it is that big. What you don’t see from outer space is all of the thousands of small streams and rivers that run in to the Nile and there are many thousands of them. All that water in those thousands of small streams is what converges to make the Nile so large.
Look at your affiliate marketing efforts in the same way, by creating multiple streams of income ; you are making a stream of wealth. You must begin by promoting a bunch of different products that have got the benefit of making re-occurring streams of income. Stick to those and nothing else. Eventually you’ll be able to chill out and like that stream of income. Imagine beginning each month off with a growing amount in the bank without doing a thing! Isn’t the ideal scenario?
You’ll never start the month from the start having to figure out what you’ve got to do to make money to meet the bills it’ll already be there in your account – is the final word in monetary security.