How Do Affiliate Programs Really Work?
Statistics say, that over 100,000 people come online every month in search of a way to make money, working from home. Affiliate Programs, have long been the answer for most opportunity seekers. But why is that?
Affiliate Programs come in many shapes and sizes. If you become an affiliate, basically you are getting a website and marketing materials to advertise the companies products or services. For each sale or lead that you produce for the company from your direct advertising efforts, you are given a commission or a share from the profits.
There are many different pay structures in the world of affiliate marketing. So, instead of boring you with all of the details, I will give you a basic run down of the 2 that are most important.
First, if you join and 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 do the advertising once and generate a sale. There is a monthly payment that your customer 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 just how profitable that can be for you as an affiliate.
Let's say that the affiliate program pays you a commission of $ 10 per affiliate in residual income, that you sign up or bring in to the program. Now, let's say that you have been advertising steady for 3 months and you have managed 100 affiliate sign ups.
100 x $ 10 per month = You get $ 1,000 dollars every month in residual income! Not too bad!
Now, let's say that you are really mastering your craft as an affiliate marketer and over 2 years time, you have used leads and email campaigns to sign up 900 more affiliates into the affiliate program!
900 + 100 = (1000 affiliates x $ 10 per month) = You will be getting paid $ 10,000 every single month, just working from home! Awesome! This figure is completely attainable if you become good at affiliate marketing and many affiliates are approaching in excess of this as you are reading this article.
Residual Income is "King". Even after you sponsored these 1000 affiliates, if you decided to stop marketing, you would still get paid this much every month!
Now that we have reviewed 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 be extremely profitable as well. A good example of this type of affiliate program would be Click Bank's affiliate program.
Ok you have just sold an internet marketing book, that sells for $ 77. You will get a percentage of the sale. Let's say 50% to make it easy. You get $ 38.50 per sale. Your profits 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. You could basically take different products, from many different affiliate programs and sell them all from one affiliate site. I use this technique myself on some of my affiliate sites and like the variety that it offer's to my visitors.
Let's say that this month you made 100 sales of this "Hot Niche book".
100 x $ 38.50 per book = $ 3,850 profit from your sales in one month!
Now, if you factor in that you will make sales from other products on that same page, you can begin to see, just how profitable affiliate programs that employ the one time commission can be!
Last thing, that I wanted to tell you about affiliate programs is this. A lot of affiliate programs offer you a down line. It can be tiered or it can be in a matrix form. Usually, the residual income programs will offer this to you. Let's just say that you sign up Joe under you as an affiliate. Than Joe goes out and signs up 4 more affiliates under him. Now those 4 affiliates sign up 4 more affiliates.
You know will get paid a percentage from their sales as well. It's like having your own army of affiliates selling and making money for you, without you having to lift a finger. Now, I've saved you a very small estimate as an example of how your business will grow. I personally have some affiliates, that have bought 100's of people into my down lines single handed. So, you can see why affiliate programs can be extremely profitable for you.
If you have been "sitting on the fence" about joining an affiliate program. You should put those worries away and join! You can make enough money to leave the daily grind behind and begin to actually enjoy life again.a