Are you one of many folk that would like to create multiple streams of residual income to help pay the bills during these rigorous economic times? Take this quick affiliate marketing test… We’re going to warn you, it does consist of some arithmetic. Let’s see how you do, it is not difficult. Below, follow 2 specific real-world marketing systems.
Your job is to figure out which one will be more profitable over time.
It takes a hundred clicks to make a sale. Every single sale pays a $100 one-time commission. There’s a 5% return rate. If you pay 80 cents per click, exactly how much money will you make per $100 investment?
In the other advertising campaign, it will ,most likely, take one hundred clicks to produce a purchase. Each transaction offers $100 commission but also offers a monthly recurring commission of $10. As shown, there is a 5% refund rate and the typical time period of the subscription is 4 months. Now, if you spend 80 cents per click as with the initial example, how much will you make now for your $100 investment?
The solution for the initial demonstration is as follows… It costs you $80 to create one sale. So that indicates you made $20, but you have to take off 5% for the refunds, leaving you with $19 net profit. 19% is a nice ROI. In the other illustration you’ll still receive $19 in earnings for that initial sale, but you also receive $40 for those 4 month to month sales. So if you add the $19 to the $40 you then have $59 which sums up to a 59% return on your investment. A much more appealing outcome!!
Residual Income – The Distinction that Makes a Difference
Pay attention to any Super Affiliate’s advertising model and you may instantly recognize the only time they will offer an one-up product (it pays only once for first sale) is if they will ,in some way, leverage that sale.
As an example, they may give a free insider report or special insider review and added bonus if you make the purchase through their affiliate hyperlink… Where the LEVERAGE is in collecting the contact info.
This is because a targeted opt in list is usually worth 25 cents to 5 dollars per month or more to the list owner.
Or, the holder may offer an UPSELL later on that has the possibility to earn an extra commission.
But, what you’ll notice more often than not, is that they concentrate on marketing products that not only pay an one-up commission but also pay a huge month to month residual commission.
Put plainly, if the affiliate internet marketing item doesn’t possess a continuity program behind it – most super affiliates will not touch it. Why should they? It can suggest the most important difference between a 19% ROI and a 59% ROI.
Multiple Residual Income Streams is the Key to Success
The Nile River is the longest river in the world.
You can see it along with it’s 2 main tributaries from outer space. It is that enormous. What you may not know about the Nile is the fact that it’s fed by THOUSANDS of individual streams and tributaries.
A large amount of little streams combining to produce one major, world-record breaking river.
Look at your affiliate marketing efforts in the same way. By producing multiple streams of income, you are producing a river of prosperity. You need to begin by advertising a bunch of different products that has the advantage of producing continuing streams of residual income. Stick with those and nothing else.
Sooner or later you will be able to kick back and enjoy that river of residual income. Imagine beginning every month off with an expanding amount in the bank without doing one single thing!! Isn’t that the ideal scenario?
You are never actually starting over or beginning from zero, and hoping beyond hope that you sell a product this month. This is what having residual income is all about.
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