Affiliate Programs With Residual Income

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By Dane Gulotta



Affiliate Programs With Residual Income

There are several different types of Affiliate Programs With Residual Income streams. The most common is a long-term cookie where you receive commissions for ongoing purchases for as long as your cookie is on the client computer. This could be 90 or 180 days. Most programs will drop a new cookie every time an order is placed so it could become a long-term revenue stream.

The second type is for reoccurring monthly payments. Two great example of this are membership programs and hosting accounts. These are great because you only need to make the sales once and the revenue continues as long as they maintain their relationship with the provider. A lot of money has been made simply by putting together “newbie” ebooks with affiliate links for all of the necessary programs to start an online business.

Membership sites include coaching programs and Diet sites amout beware many programs will only pay you once. Make sure that their agreement states that you will receive revenues for the entire time they are members.

The third type is a long-term residual program where once you are in their customer database they are tagged as your referral and you receive commission for the life of their relationship. Ace hardware is one company that comes to mind that is doing that.

Now to further complicate residual income stream there are also 2 tier programs. What those programs do is the following. If you refer someone who becomes an affiliate you not only receive a percentage of their purchases, but you also receive a percentage of the purchases made by the people that they refer.

There are also programs that give percentages for more than two tiers, but that’s basically network marketing and there are plenty of resources to find out about them.

Here are a few place to look for affiliate programs with residuals:

The Affiliate Guide

Comprehensive list of affiliate programs. Here is the link to their residual affiliate programs.

http://www.affiliateguide.com/residual.html

ClickBank

One of the things that I really like about Clickbank is that they provide a great set of tools to research the affiliate programs. You can search for programs with residual income streams from the marketplaces tab. I believe that Clickbank is exclusively info-products.

http://dmcisaac.reseller.hop.clickbank.net

LinkShare

They have over 2,000 different companies covering the gamut of online purchases. They have the Ace Hardware affiliate program and other programs with lifetime commissions.

http://www.linkshare.com

Other affiliate sites

I don’t know if they have recurring programs or not

Commission Junction

Hydra Network

Kolimbo

Shawn Collins has great information in his blog for anyone wanting to get started in affiliate marketing. He also has a searchable database of top affiliate programs .

http://blog.affiliatetip.com/

Hope this answers your questions.

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chelskie918 profile image

chelskie918  says:
9 months ago

Great tips! Affiliate marketing is not as hard as you think - just show your personal experience with that recurring product, like how you take advantage of it, how you benefit from it and your referral will appreciate you for helping them.

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To answer the request -- The Number One Program that I'm promoting

The number one program that I'm promoting currently is Edmond Loh's Resell Rights Mastery. I'm promoting his Paid Customer Goldmine product which includes a free membership to his membership website and has a One Time Offer to upgrade to a monthly membership. My website is here http://www.YourRichNiche.com or you can go directly to his site here http:www.resellrightsmastery.com. I've been very happy with the quality of products that I've found including his straightforward training materials for affiliates and members.

Resell rights is not for everyone. There are basically two ways to play the resell game. Give a bunch of stuff away and/or sell them cheap on Ebay and hit people up with One time offers to buy higher priced packages. It can work. It just takes time and there's a lot of competition. I prefer to take the materials that I find, repackage them and build websites around them. Which also takes time, but I feel like I'm giving additional value back by doing that. I'm also working on some products of my own that I will eventually be marketing.

Other residual programs to look at:

Ace Hardware's lifetime affiliate program through LinkShare.

Aweber - -They have the best autoresponder in the business

Pretty much any hosting company: Godaddy, Hostgator etc..

Hope that Helps

How to Use Two Tier Affiliate Programs to Your Advantage

To those who are not familiar with affiliate marketing, two-tier could be a new term to you but to those who are involved in this kind of money-making experience; it could mean a stream of income. Two-tier is an enticing feature of a particular affiliate program wherein, affiliates are allowed to sign-up additional affiliates below them. So that when the sub-affiliates otherwise known as second tier affiliates, earns a commission, the affiliate above receives a commission too.

In two-tier system, the first tier of commission is just like in the usual affiliate program. The sole difference is that it has an additional tier/s or sub-affiliates, whereby marketers also gain a commission once the people that the additional tiers referred to the program generate sales. Theoretically, affiliate programs can have multi-tier program with infinite number of tiers, however, there are practical limitations. As tiers increase, the affiliate program draws more webmasters who are mostly interested in gaining profit from other’s work and effort.

Two-Tier affiliate program is also recognized as Multi-Level Marketing. When you sign-up for an affiliate program, you are identified as the first tier and the person that you have recruited or encouraged to sign up is the second tier. If there are additional tiers, then the system can now be regarded as multi-level marketing (MLM). But today, MLM isn’t as effective and successful as it was several years ago. It is because at present, affiliates can freely select from thousands of affiliate programs and they can quickly switch from one program to another.

You could probably go wrong if you’re thinking that you can depend on your second tier to do the job for you. So if you want to use two-tier affiliate program to your advantage and generate more income by encouraging sub-affiliates to sign-up below you, make sure that you carefully choose your affiliate merchant. Pick those merchants who generate stable stream of high quality products, give high or just commissions, offers real time tracking, furnishes you with a proven and tested advertising arsenal and treat their affiliates very well. You can also sign-up for the merchant who gives high visitors-to-sales conversion rate.

It is also advisable if you engage yourself with a web merchant that has a user-friendly website which you can access anytime so that you can monitor your statistics including visits and sales. And if possible, choose the one with powerful marketing tools which you can use in promoting their products.

You’re just wasting much of your time and effort and worse, damaging your integrity once you promote poor affiliate program because your visitor will surely presume that the product or service you are reselling must be dreadful too. That’s the reason why it is important to pick first-rate affiliate programs. Through these, you can not only build up a good relationship with your visitor, but also, you can easily get more tiers to sign-up under you. You should also be cautious of some affiliate programs that give more importance on the profits to be earned in taking on other affiliates than on the income from sales, because you’ll just eventually find out that someone has already close those sales without informing you. Usually, this kind of affiliate program offers a very low first-tier payment but a sky-scraping second-tier commission.

If you want to start an affiliate program of your own, you surely have to decide whether it will be a single tier or two-tier affiliate program. Who am I to say which of these two programs are better? But let me tell you the benefits you could get out of two-tier affiliate program.

First, your profit will increase due to increased sales from the customers that your second tier has referred. Second, you have a much broader customer base to which you can sell your products and services. Then, you gain more and stable income because the customers referred by your affiliate and sub-affiliates could probably develop a lifetime loyalty on your site and your products. Plus, you have an army of sub-affiliates who will promote and resell your products and services to their visitors and subscribers.

Two-tier program has been a proven winner and should be the number one choice for the budding affiliates as well as for the affiliate program managers. When you start gaining profits from your site as well as your tiers, this is now the right time to say that you have used two-tier affiliate program to your advantage.

The Different Types Of Affiliate Marketing

Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

• Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

• Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action-that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

o Pay Per Sale (PPS)

In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

o Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant's site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant's site.

• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.

• In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

• Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

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