How do affiliate programs really work?
Statistics say that more than 100,000 people go online each month in search of a way to earn money, working from home. Affiliate programs have long been the answer to most opportunity seekers. But why is that?
Affiliate programs come in many shapes and sizes. If you become an affiliate, you basically get a website and marketing materials to advertise the company’s products or services. For every sale or lead you produce for the business from your direct advertising efforts, you are awarded a commission or a portion of the profits.
There are many different payment structures in the affiliate marketing world. So instead of boring you with all the details, I’ll give you a basic rundown of the 2 that are most important.
First, if you join an affiliate program that offers you residual income, good for you! This type of commission payment plan can be extremely profitable for you. Residual Income Commission basically means that you advertise once and generate a sale. There is a monthly payment that your client makes to be in that program or use that service. You, as an affiliate, will receive a part of that monthly payment as long as the customer uses that service.
Let’s look at an example of how profitable it can be for you as an affiliate.
Let’s say the affiliate program pays you a commission of $ 10 per affiliate in residual income, which signs up or brings into the program. Now let’s say you have been advertising steadily for 3 months and have achieved 100 affiliate sign-ups.
100 x $ 10 per month = You get $ 1,000 each month in residual income! Not bad!
Now let’s say you are really mastering your craft as an affiliate marketer and for 2 years you have used leads and email campaigns to enroll 900 more affiliates in the affiliate program.
900 + 100 = (1000 affiliates x $ 10 per month) = You will get paid $ 10,000 every month, just working from home! Impressive! This figure is completely achievable if you get good at affiliate marketing and many affiliates earn more than this as you read this article.
The residual income is “King”. Even after you have sponsored these 1000 affiliates, if you decided to stop marketing, they would still pay you this amount every month!
Now that we’ve reviewed the residual income, let’s look at the one-time sale!
Many affiliate programs employ this type of commission structure. This type of commission structure can also be extremely profitable. A good example of this type of affiliate program would be the Click Bank affiliate program.
All right, you just sold an internet marketing book, which sells for $ 77. You will get a percentage of the sale. Let’s say 50% to make it easier. You get $ 38.50 per sale. Your earnings can add up quickly if your product is popular or in demand! This type of affiliate marketing offers you many more items to sell as an affiliate. Basically, you could take different products, from many different affiliate programs, and sell them all from one affiliate site. I myself use this technique on some of my affiliate sites and I like the variety it offers to my visitors.
Let’s say you made 100 sales of this “Hot Niche book” this month.
100 x $ 38.50 per book = $ 3,850 profit on your sales in one month.
Now, if you consider that you will be making sales of other products on the same page, you can start to see how profitable affiliate programs that use the one-time commission can be.
The last thing I wanted to tell you about affiliate programs is this. Many affiliate programs offer you a downline. It can be staggered or in the form of a matrix. Residual income programs will usually offer this. Let’s say you enroll Joe under you as an affiliate. Than Joe goes out and registers 4 more affiliates under him. Now those 4 affiliates enroll 4 more affiliates.
You know that they will also pay you a percentage of their sales. It’s like having your own army of affiliates selling and making money for you, without lifting a finger. Now, I gave you a small estimate as an example of how your business will grow. Personally, I have some affiliates who have brought hundreds of people to my downlines without help. So you can see why affiliate programs can be extremely profitable for you.
If you’ve been “sitting on the fence” about joining an affiliate program. You should drop those worries and join! You can earn enough money to put your daily routine behind you and start enjoying life again.