Are you one of the people that need to make some residual income to help ease monetary pressures that you could be under due to this recession, and maybe in the procedure you want to accumulate some real wealth? Here's a quick test on affiliate marketing. Let's see how you do. These are two affiliate marketing strategies, you select which one is better. Let's see if you can choose which one will be more moneymaking?
In one selling scenario it takes one hundred clicks to make a sale. The commission received once that sale is made is $100. The normal refund rate for the item is 5%. If you pay 80 cents per click what is going to be the return on your initial $100 investment (did we mention there had been math involved?).
In the second selling scenario it in a similar way takes one hundred clicks to make a sale. Each sale offers $100 commission but also gives a once per month residual commission of $10. As above, there's a 5% refund rate and the average length of the subscription is four months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
O.K, in the first example it might cost $80 to make one sale. So you would make $20 minus the five pc refund rate therefore ending up with an ROI of $19. That's not such a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is far more impressive due to that 4 months worth of residual income. You'd still get the $19 ROI on your 1st $100 investment, but here you make that additional $40 a 59% ROI.
Residual Income That Little Extra Goes a Long Way
You can always tell a superb affiliate's promoting model the only time they'll offer something similar to in the first example above, they will find a technique to leverage that sale. Many of them will be offering a free report, a bonus, or a kind of review simply as a strategy of getting your opt in info they give value for value and that's where the leverage comes in. A targeted opt in list could be worth up to 5 dollars a month to the list owner. The key's to provide an upsell later on which of course gives the chance to earn another commission.
The heavy hitters in the affiliate marketing business trump that than that, they target promoting their products which initially supply an one-time commission but go on to offer an upsell to something that provides a monthly residual income, such as a membership site. So the key to the best affiliate marketing opportunities is not about the first commission, it's about what follows later on. Can you blame them? In the example, it's the most important difference between 19% and 59% ROI.
The Secret to Prosperity is Multiple Streams of Residual Income
The famous Stream Nile is the longest stream on this planet. If you look down from space you can see it and its two main tributaries quite obviously. Yes, it is that large. What you do not see from outer space is all the thousands of small streams and rivers that run in to the Nile and there are countless thousands of them. All that water in those thousands of tiny streams is what converges to make the Nile so enormous.
Look at your affiliate promotion efforts in the same way, by creating multiple streams of income ; you are creating a brook of wealth. You must start by promoting a bunch of different products that have got the advantage of creating re-occurring streams of income. Stick to those and nothing else. Finally you will be able to chill out and like that river of income. Imagine starting every 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 have to do in order to make money to meet the bills it will already be there in your account - is the ultimate in financial security.
In one selling scenario it takes one hundred clicks to make a sale. The commission received once that sale is made is $100. The normal refund rate for the item is 5%. If you pay 80 cents per click what is going to be the return on your initial $100 investment (did we mention there had been math involved?).
In the second selling scenario it in a similar way takes one hundred clicks to make a sale. Each sale offers $100 commission but also gives a once per month residual commission of $10. As above, there's a 5% refund rate and the average length of the subscription is four months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
O.K, in the first example it might cost $80 to make one sale. So you would make $20 minus the five pc refund rate therefore ending up with an ROI of $19. That's not such a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is far more impressive due to that 4 months worth of residual income. You'd still get the $19 ROI on your 1st $100 investment, but here you make that additional $40 a 59% ROI.
Residual Income That Little Extra Goes a Long Way
You can always tell a superb affiliate's promoting model the only time they'll offer something similar to in the first example above, they will find a technique to leverage that sale. Many of them will be offering a free report, a bonus, or a kind of review simply as a strategy of getting your opt in info they give value for value and that's where the leverage comes in. A targeted opt in list could be worth up to 5 dollars a month to the list owner. The key's to provide an upsell later on which of course gives the chance to earn another commission.
The heavy hitters in the affiliate marketing business trump that than that, they target promoting their products which initially supply an one-time commission but go on to offer an upsell to something that provides a monthly residual income, such as a membership site. So the key to the best affiliate marketing opportunities is not about the first commission, it's about what follows later on. Can you blame them? In the example, it's the most important difference between 19% and 59% ROI.
The Secret to Prosperity is Multiple Streams of Residual Income
The famous Stream Nile is the longest stream on this planet. If you look down from space you can see it and its two main tributaries quite obviously. Yes, it is that large. What you do not see from outer space is all the thousands of small streams and rivers that run in to the Nile and there are countless thousands of them. All that water in those thousands of tiny streams is what converges to make the Nile so enormous.
Look at your affiliate promotion efforts in the same way, by creating multiple streams of income ; you are creating a brook of wealth. You must start by promoting a bunch of different products that have got the advantage of creating re-occurring streams of income. Stick to those and nothing else. Finally you will be able to chill out and like that river of income. Imagine starting every 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 have to do in order to make money to meet the bills it will already be there in your account - is the ultimate in financial security.
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