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| Residual Income Streams |
Below you will follow 2 actual real-life marketing methods. Your job is to work out which one will make more money in the long term.
In the 1st scenario it takes a hundred clicks to make a sale. Every sale pays $100 in commissions. The refund rate is a low five percent. At $.80 per click, what is going to be the return on your primary $100 investment???
Now here is the second... It takes one hundred clicks to make a sale. Each sale pays a $100 and a monthly commission of $10. There is a 5% refund rate and the average monthly subscription lasts 4 months. If you pay $0.80 per click, how much money will you make per $100 investment?
The answer for the first example is as follows : it costs you $80 to make one sale. So that implies you made $20 but you have to take off five percent for the repayments, leaving you with $19 net profit. 19% is a rather good ROI (return on investment). In the second example you'll still receive $19 in commissions for that preliminary sale, but you also receive $40 for those four monthly sales. So if you add the $19 to the $40 then you have $59 which translates to a 59% return on investment... Wow! a much more exciting outcome!
Residual Income Makes An Enormous Difference!
Pay close attention to any Super Affiliate's promoting model and you may quickly discover the only time they'll offer a one-up product (it pays only once for 1st sale) is if they can somehow leverage that sale.
For example, they may offer a free report or special insider review and bonus if you make the purchase thru their affiliate link... Where the LEVERAGE is in collecting the opt-in information.
Why? Because a concentrated opt-in list is commonly worth $0.25 to $5.00 Per Month or even more to the list owner.
Super Affiliates will most likely target promoting products which will seem to only pay a one-time commission, but in reality turn out to pay much more as monthly residual income.
So what you can learn from this exercise? If an affiliate marketing product has this ability to earn additional income on a monthly, you must go for it. Doesn't that make sense? It's the difference between a grand 59% ROI or a far less impressive 19%.
Multiple Residual Income Streams is the Key to Wealth
The longest river in the world is the Nile. The only real way that you can appreciate the scale of the Nile is by seeing it from outer space. It is awe-inspiring. What you don't see when you look down from your starship is that the Nile is what it is because it's fed by thousands of small tributaries. Thousands of them. This huge River only exists due to all of the small tributaries and streams that run into it.
By grasping that many small streams of income can build to form a river of wealth you need to take your affiliate marketing attempts to a higher level. Begin by promoting products that pay residual monthly income on top of an initial commission.
Don't be tempted by other products, these are the only ones that will create wealth in the longer term. After only a few months you'll see these small streams of income turn into a major river of income. The beauty of residual monthly income is that you never start a month with nothing in the bank. Imagine that!
No more thinking how much your income will be and whether you'll be in a position to pay the bills... that residual income will shortly build up to be more than adequate to cover the bills before you even start on any other income-producing projects.
Dan Armor (email: danarmor@gmail.com)
PS: If You Do Not Have a Step-By-Step Blueprint For Success, Check This Out (Unless You Already Have Too Many Leads) – Click Here For Instant Access
Image: digitalart / FreeDigitalPhotos.net
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