How To Create A Sustainable Work-At-Home Affiliate Marketing Business Through Recurring Commissions!
How To Create A Sustainable Work-At-Home Affiliate Marketing Business Through Recurring Commissions!
©2010 Doug Champigny, http://captain-affiliate.com. All Rights Reserved.
When first starting out in affiliate marketing online, most new marketers make the same mistakes – they throw up a few banners and expect to earn great income, they tweet about a new e-book that’s just come out, they post in forums with that affiliate link in their signature and hope for the best.
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While each of those and similar methods may or may not create sales and result in some commissions coming in, none of them are leading toward a sustainable online business model. In order to build a strong, well-oiled affiliate marketing endeavor, it’s necessary to focus on residual income, not simple one-off sales promoted once or twice.
Most successful individuals in the field look for services to promote, services with on-going billing that then pay recurring commissions. Some of the most common of these include web hosting, membership sites, services like autoresponders, etc. These are opportunities that tend to be used by the widest section of your target market, and as such have the highest potential income for you.
It’s simple to see the power of this – if you promote an e-book and it sells, you make your set rate – say 50%. But if you’d sold a site hosting package to someone and they kept their site there for two years, you might have made that same commission 24 times! Retention rates vary by the type of site, with hosting and autoresponders usually keeping their clients longer than the average paid membership site does.
If you promote a site with a retention of 1+ years, for example, and can generate an average of 5 sales per month, you’re being paid for 5 sales the first month, 10 sales the second, 15 sales the third, etc. – you’re still just selling 5 sales per month, but the renewals keep building if the people stay with the service. Likewise, if you stop promoting that service today, you’ll receive a declining amount from your renewals each month, but could potentially go on to receive income from it for a year after you moved on to other projects.
Now don’t pass up on hot opportunities that spring up along the way, but be sure to focus most of your efforts on recurring income possibilities to try and bullet-proof your online business… It’s the best way to make sure your time, money and efforts invested are best reflected in your affiliate marketing success!
About The Author…
Doug Champigny, a.k.a. Captain Affiliate, is a world-famous Internet marketing coach, mentor & speaker and the creator of the PowerStart Marketing 4-week Internet Marketing Crash Course. To learn more about Doug or to book him to speak at your next event, contact him through his blog at http://DougChampigny.com.
Technorati Tags: affiliate marketing, affiliate marketing business, affiliate marketing success, recurring commissions, residual commissions
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10 comments
Brett McEllhiney - Follow this person as @bmcellhiney on Twitter
on January 22, 2010 at 4:39 AM
Have to agree 100% Doug!
I have been focusing more on recurring income here lately and it is definitely starting to have a much better effect on my bottom line.
In addition to recurring affiliate income I have also just recently opened my own membership site and things are definitely going well.
FYI: Can’t wait to check out your new PowerStart marketing course
Brett McEllhiney´s last blog ..The Secret to a Simple Six Figure Income Exposed!
Mike Paetzold - Follow this person as @mikepaetzold on Twitter
on January 22, 2010 at 5:47 AM
Yes finding those recurring programs can help you create a base income so that you have a foundation each month.
Mike Paetzold´s last blog ..What to blog about today?
Affiliate CPA Network on January 22, 2010 at 6:41 AM
To find a good affiliate program is as hard as to find a loving spouse who will always be by your side and never let you down. I usually sift out one of twenty companies to learn later on that only one out of five chosen deserves working with.
Luca Di Nicola - Follow this person as @rsonline on Twitter
on January 22, 2010 at 8:47 AM
I think thit is a lesson we as internet marketers learn over time. When first starting out we just want to make sales and make them quickly so we jump from one thing to another.
What I’m finding is that it’s best to plan and focus on on only a few campaigns at a time including services with on-going billing
I’d like to add that it’s also a good idea to promote something that you use yourself or at least can vouch for. Makes selling a lot easier
Luca Di Nicola´s last blog ..Powerstart 2010 – Starting an Online Business The Right Way
Earl Netwal - Follow this person as @EarlNetwal on Twitter
on January 22, 2010 at 2:49 PM
Love the theory, have been having trouble finding the right horse to ride though. Been promoting an auto-responder and a web hosting site for some time, but have not been successful in getting even one taker until recently.
Have found managed to generate a few membership sales, that have been repeating for a while and it has given me the taste. Would love to find some more I could focus on.
Earl Netwal´s last blog ..Instant Fast Traffic – A Review
Andre Arnett - Follow this person as @learningaffil on Twitter
on January 22, 2010 at 6:36 PM
Just beginning to understand recurring income streams a bit better now and can see the potential. Will want to spend more time promoting these types of sites. Thanks for the information
Andre Arnett´s last blog ..Let AIDA Help Improve Your Sales
Fred Lotgering - Follow this person as @lotcon on Twitter
on January 23, 2010 at 11:31 AM
Recurring Commissions is every marketers dream. Finding good ones is not easy and to retain members is certainly a challenge.
Fred Lotgering´s last blog ..ezArticlelink – Article Spinning
Joel Osborne - Follow this person as @JoelOsborne on Twitter
on January 24, 2010 at 8:18 PM
Great post Doug! You hit the nail on the head about a fantastic way for beginners or anyone to build recurring income. It takes just about the same effort to promote a single sale product that it does a recurring product.
Joel Osborne´s last blog ..Power Start 2010 – Start The Year With A Bang
Alex Sysoef - Follow this person as @thespotter on Twitter
on January 25, 2010 at 11:37 AM
The golden goose of income – recurring cash
Thanks Doug!
Alex Sysoef´s last blog ..Opinion: Why WordPress Should Never Be Used As Membership Management System
Shelby Carr on January 29, 2010 at 9:41 PM
Excellent advice Doug, I think I’ll follow it.
It takes just as much effort to promote something with recurring income as it does a single product. Thanks for making me realize it.
Shelby Carr´s last blog ..Anyone Can Do Affiliate Marketing, Even You…