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.
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!
Doug Champigny 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.
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