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Affiliate Marketing and
Residual Income

By Doug Champigny

 

If you've been exploring the possibility of getting into affiliate marketing, or if you are already an affiliate marketer, you have probably heard the term 'residual income.' This is an important word in the world of affiliate marketing, as it pertains to your future income.

Residual income is ongoing income that is derived from one sale. In other words, if you sell a product or service such as webhosting, you receive a commission for the initial sale, and then you receive residual commissions for as long as that customer remains a

customer and pays their webhosting fees. This is residual income – and it can add up to a huge chunk of change over the course of time.

Let's look at an example. Let's say that you are promoting webhosting (this works for many different products. We are just using webhosting as an example). You make three sales the first month, and each month for the next year.

Month 1: 3 sales x $20 commission = $60.00
Month 2: 3 sales x $20 commission + residual income of $60.00 = $120.00
Month 3: 3 sales x $20 commission + residual income of $120.00 = $180.00
Month 4: 3 sales x $20 commission + residual income of $180.00 = $240.00
Month 5: 3 sales x $20 commission + residual income of $240.00 = $300.00
Month 6: 3 sales x $20 commission + residual income of $300.00 = $360.00
Month 7: 3 sales x $20 commission + residual income of $360.00 = $420.00
Month 8: 3 sales x $20 commission + residual income of $420.00 = $480.00
Month 9: 3 sales x $20 commission + residual income of $480.00 = $540.00
Month 10: 3 sales x $20 commission + residual income of $540.00 = $600.00
Month 11: 3 sales x $20 commission + residual income of $600.00 = $660.00
Month 12: 3 sales x $20 commission + residual income of $660.00 = $720.00

So, if you are making three sales with a $20.00 commission each month consistently, and those customers are continuing to pay each month, netting you another $20 commission each month for each customer, at the end of one year, you will be earning $720 per month in commission – with only $60 of that coming from new sales. Just imagine what the monthly commission would be if your share of the sale was even higher, or if you were doing this with several different affiliate products! We are talking about staggering amounts of money!

So, when it comes to affiliate marketing, look for residual opportunities, as well as multi-tiered opportunities that will also give you commissions on other people's sales. Think about this long and hard. In the example above, only $60 of the income was coming from new sales. Within three months, the bulk of the money was coming from residual income!


©2007 Doug Champigny. All Rights Reserved.
Start-Affiliate-Marketing.com,
404-158 Fitch Street,
Welland, Ontario
Canada L3C 4V6.



LEGAL NOTE: Every effort has been made to accurately represent our product and its potential. Please remember that each individual’s success depends on his or her background, dedication, desire and motivation. As with any business endeavor, there is no certain guarantee that you will earn any money. Always perform full Due Diligence and seek appropriate Professional advice when contemplating any business endeavor or investment opportunity.