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Are you one of the people that need to make some residual income to ease monetary strains that you may be under due to this recession, and perhaps in the process you want to accumulate some real wealth? Here is a quick test on affiliate marketing. Let's see how you do. Here are two internet marketing strategies, you select which one is better. Let's see if you can pick which one will be more profitable?
In one marketing scenario it takes one hundred clicks to make a sale. The commission received, once that sale is created, is $100. The ordinary refund rate for the item is 5%. If you pay 80 cents per click what will be the return on your first $100 investment (did we mention there was maths involved?).
In the second selling scenario it in a similar way takes a hundred clicks to make a sale. Every sale offers $100 commission but also gives a once a month residual commission of $10. As indicated, there is a five percent refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the first example, how much will you make now for your $100 investment?
Okay, in the 1st example it might cost $80 to make one sale. So you would make $20 minus the five percent refund rate thus ending up with an ROI of $19. That is not such a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is far more inspiring due to that four months worth of residual income. You'd still get the $19 ROI on your 1st $100 investment, but here you make that extra $40 a 59% ROI.
Residual Income That Small Extra Goes a Great Distance
You can always tell a super affiliate's promoting model the only time they'll offer something like in the 1st example above, they are going to find a technique to leverage that sale. A lot of them will be offering a free report, a bonus, or some kind of review simply as a means of obtaining your opt in info. They give worth for price and that's where the leverage comes in. A focused opt-in list might be worth up to 5 bucks a month to the list owner. The key's to supply an upsell later , which naturally gives the chance to earn another commission.
The heavy hitters in the affiliate internet marketing business go one better than that, they target promoting their products which at first offer an one off commission but go on to offer an upsell to something that offers a monthly residual income, for example a membership site. So the key to the best affiliate marketing opportunities is not about the first commission, it's about what follows later on. Are you able to blame them? In the above example, it's the most important difference between 19% and 59% ROI.
The Secret to Wealth is Multiple Streams of Residual Income
The famous Brook Nile is the longest brook on this planet. If you look down from space you can see it and its two main tributaries quite clearly. Yes, it is that big. What you don't see from outer space is all the thousands of tiny streams and brooks that run in to the Nile and there are countless thousands of them. All that water in those thousands of little streams is what converges to make the Nile so gigantic.
Look at your affiliate marketing efforts in the same way, by creating multiple streams of income ; you are making a river of wealth. You should begin by promoting a number of different products that have the benefit of creating reoccurring streams of income. Stick to those and nothing else. Ultimately you will be able to chill out and like that stream of income. Imagine starting every month off with a growing amount in the bank without doing a thing! Isn't that the ideal scenario?
You'll never start the month from the start having to figure out what you've got to do to make cash to meet the bills it'll already be there in your account - is the final word in economic security.
In one marketing scenario it takes one hundred clicks to make a sale. The commission received, once that sale is created, is $100. The ordinary refund rate for the item is 5%. If you pay 80 cents per click what will be the return on your first $100 investment (did we mention there was maths involved?).
In the second selling scenario it in a similar way takes a hundred clicks to make a sale. Every sale offers $100 commission but also gives a once a month residual commission of $10. As indicated, there is a five percent refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the first example, how much will you make now for your $100 investment?
Okay, in the 1st example it might cost $80 to make one sale. So you would make $20 minus the five percent refund rate thus ending up with an ROI of $19. That is not such a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is far more inspiring due to that four months worth of residual income. You'd still get the $19 ROI on your 1st $100 investment, but here you make that extra $40 a 59% ROI.
Residual Income That Small Extra Goes a Great Distance
You can always tell a super affiliate's promoting model the only time they'll offer something like in the 1st example above, they are going to find a technique to leverage that sale. A lot of them will be offering a free report, a bonus, or some kind of review simply as a means of obtaining your opt in info. They give worth for price and that's where the leverage comes in. A focused opt-in list might be worth up to 5 bucks a month to the list owner. The key's to supply an upsell later , which naturally gives the chance to earn another commission.
The heavy hitters in the affiliate internet marketing business go one better than that, they target promoting their products which at first offer an one off commission but go on to offer an upsell to something that offers a monthly residual income, for example a membership site. So the key to the best affiliate marketing opportunities is not about the first commission, it's about what follows later on. Are you able to blame them? In the above example, it's the most important difference between 19% and 59% ROI.
The Secret to Wealth is Multiple Streams of Residual Income
The famous Brook Nile is the longest brook on this planet. If you look down from space you can see it and its two main tributaries quite clearly. Yes, it is that big. What you don't see from outer space is all the thousands of tiny streams and brooks that run in to the Nile and there are countless thousands of them. All that water in those thousands of little streams is what converges to make the Nile so gigantic.
Look at your affiliate marketing efforts in the same way, by creating multiple streams of income ; you are making a river of wealth. You should begin by promoting a number of different products that have the benefit of creating reoccurring streams of income. Stick to those and nothing else. Ultimately you will be able to chill out and like that stream of income. Imagine starting every month off with a growing amount in the bank without doing a thing! Isn't that the ideal scenario?
You'll never start the month from the start having to figure out what you've got to do to make cash to meet the bills it'll already be there in your account - is the final word in economic security.
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