Learn Why You Should Promote Residual Affiliate Programs in South Africa. Are you a webmaster in need of some extra cash? Or are you thinking about starting an online business but don’t have anything to sell yet? If that’s the case, affiliate marketing could be the best solution for you. You won’t have to worry about the products you have to sell if you use affiliate marketing. All you need is a website with enough content related to the products of a particular online business that offers affiliate programs. You can immediately begin earning a certain amount of money by joining the program or becoming an affiliate!
The term “affiliate marketing” refers to a business relationship between a merchant and his affiliates. An affiliate agrees to send traffic to a merchant’s website in exchange for a commission. The affiliate who directed the traffic will be compensated if that traffic results in some kind of action, such as a visitor purchasing a product on the merchant’s website or becoming a lead for the company. Compensation can be in the form of a percentage sales commission for sales generated or a fixed fee determined when the affiliate joins the merchant’s affiliate program.
Affiliate marketing has become one of the most popular online marketing methods today, promising a plethora of benefits for both merchants and affiliates. Today, almost every merchant or retailer website has an affiliate program that anyone can join. Most retailers would entice people to become affiliates or members of their program by promising lucrative commissions, lifetime commissions, click-through income, and other perks. Would all of these affiliate programs, however, provide the same advantages?
Most affiliate programs will pay you a one-time commission for each sale or lead you bring to the merchant’s website as an affiliate. The commissions for this type of affiliate program are usually quite high, ranging from 15% to around 60%. Other affiliate programs would pay you a set amount for each click or visitor you send to the merchant’s website. This type of program usually pays a smaller fee for each click through, usually not more than half a dollar. The benefit of this type of program, however, is that the visitor will not be required to make a purchase in order for the affiliate to be compensated.
The residual income affiliate program is another type of affiliate program. Residual affiliate programs typically pay a small percentage of the sales commission for each sale directed to the merchant’s site by the affiliate. This commission is usually between 10% and 20% of the sales price. As a result, many people overlook residual affiliate programs in favor of high-paying one-time commission affiliate programs. Is this a mistake, or are these people making the right decision?
We can’t say for certain whether people are making a mistake by opting for a high-paying one-time commission affiliate program. However, we can confidently state that ignoring residual affiliate programs is a huge mistake. Although residual affiliate programs pay at a lower rate, merchants who offer them typically pay you regular and ongoing commissions for a single affiliate-initiated sale! That is, in a one-time commission program, you are paid only once for the same effort you put in to promote a specific affiliate program, whereas in a residual program, you are paid on a regular and ongoing basis!
So, do you see the advantages of promoting residual affiliate programs now? Or do they remain ambiguous? If they’re still a little hazy, let’s use this example to clarify them.
Assume there are two online merchants who both provide web hosting services. The first merchant has a one-time commission affiliate program that pays $80 for each sale that is initiated by an affiliate. The second merchant has an affiliate program as well, but it’s a residual affiliate program that pays only $10 for each affiliate-generated sale. As an affiliate, we may be immediately drawn to the first merchant’s offer, as $80 is clearly a much larger sum than $10. However, by considering things before acting, we may be able to see that the second merchant provides us with more opportunities to earn a larger sum of money.
If you send traffic to a merchant who converts it into a sale, you’ll only be paid once by the first merchant for the sale you started. However, with the second merchant, you’ll be paid monthly as long as the customer you referred continues to use the merchant’s web hosting service. That is, in residual affiliate programs, you are paid monthly for the same effort of getting one customer to use the merchant’s service, whereas in one-time commission affiliate programs, you are only paid once.
Is it worthwhile to promote residual affiliate programs? Yes, because these types of affiliate programs allow you to make more money in the long run! Do you think residual affiliate programs would be the best fit for you? Probably not, but most likely yes. It isn’t really my place to say. However, given the advantages that residual affiliate marketing can provide, it would be foolish to overlook such programs.