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Residual Affiliate Programs

Residual affiliate programs offer ongoing income where you can make money online or make money from home. Find out more about residual income, affiliate programs, and what types of affiliate programs are available.

What Is Residual Income?

Residual means “what is left over as residue.” The common and customary meaning for the term residual income is “income that is above and beyond what one needs to pay personal debts, including mortgage, utilities, credit cards, etc.” Another term for it isdiscretionary income. A second meaning, for which the plural residuals is often used, is “payments made for repeated use of work” and can apply to a television show or a piece of writing, for example. Residuals are one form of passive income, income that comes without active participation in a business, but it is not the only kind of passive income. Investment income is another example of passive income that is not considered residuals.

What Is an Affiliate Program?

An affiliate program is a marketing program in which a website owner forms an affiliation with a company for which he or she provides advertising of one sort or another.? The affiliate may host banner or other types of ads and/or blog about or write reviews of the company’s products.? When visitors to the affiliate’s website pursue a connection to the company that meets the terms of the contract, the affiliate gets paid. Possible payment arrangements include:

  • Pay-per-click (or cost-per-click), in which the merchant pays the affiliate on the basis of how many visitors to the affiliate’s site click on links to the company site
  • Pay-per-sale (or cost-per-sale) in which a click-through is not enough – the affiliate does not get paid unless and until a sale is generated after the visitor clicks through to the company from the affiliate site
  • Pay-per-lead (or cost-per-lead) in which the merchant pays the affiliate when the visitor who clicks through completes some type of sign up that puts him or her in an ongoing relationship with the company

What Are the Types of Affiliate Programs?

There are several types of popular affiliate programs. In the programs known as two-tier programs, there is a multi-level marketing structure that allows affiliates to profit from both commission sales and also recruiting of other affiliates. In the programs referred to as residual affiliate programs, a visitor who comes to the company through the affiliate is forever linked to the affiliate, and that visitors subsequent purchases of goods or services also create a payment to the affiliate. These subsequent payments are often linked to payments the visitor makes on a monthly basis, such as membership fees or service fees. Another name for residual affiliate programs is lifetime commissions programs, which is another way of stating that once an affiliate refers a customer, the customer’s purchases earn the affiliate continued commissions for the life of the relationship.

Thoughts About Residual Affiliate Programs

Some people consider residual affiliate programs the best type of affiliate program because they are the only one that doesn’t just pay once.? On the other hand, because they often are provided by companies with one type of products and services—those with recurrent monthly charges—they may limit the type of products and services that an affiliate has to choose from.? The question is, what fits best with the affiliate’s goals and website.

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ClickBank Affiliate Program Review

ClickBank has found their niche in the affiliate program industry by promoting the sales of digital goods. Their huge variety of product types are not commonly found on other networks. Plus, they allow affiliates to earn up to 75% commissions on certain advertisements. Overall, ClickBank seems to run a highly organized system. They combine commissions from all your promotions and provide frequent and reliable tracking and payment.

ClickBank is a reputable company that has been in service since 1998. With more than 12,000 digital product vendors, they are likely to match you with an ad that will produce prosperous commissions for your site. More than 26,000 digital transactions are processed through ClickBank each day, causing them to be ranked as one of the most highly trafficked sites online.

Commissions for Clickbank are paid weekly by check or direct deposit. ClickBank operates on a pay-per-sale basis, so whenever a digital product is sold, a share of the profit is tracked and paid by ClickBank. Since digital products are instantly delivered and received, there are no long waits for earned commissions. Overall, they produce more rewards for your efforts.

There are a couple of limitations pertaining to the ClickBank program. Some users get frustrated because although they can track the number of people who click on their promoting ad, they have no way of telling whether or not they actually purchase the download. In addition, some affiliates report that a few of the products promoted by ClickBank seem to be overpriced and of little value.

However, for the most part, ClickBank affiliates find success in earning extra income and are happy with the services. ClickBank’s online help center offers valuable tutorials on how get started as an affiliate and to maximize your earning potential. Overall, ClickBank is easy to use and and its free to get started.

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Pay Per Click Programs

When you are choosing a way to make money online with affiliate networking or affiliate programs you will find that there are basically three ways that you will get paid. There are pay per click, pay per lead and pay per sale programs. You need to decide after doing some research which type may be most lucrative for your website.

When an affiliate program pays for a qualified lead they you are usually only responsible for getting a website visitor to sign up for something or apply for something like a credit card. Even if they are not accepted or do not purchase anything you are still paid because you got the visitor to do the qualifying action.
Pay per sale works differently than the pay per lead. The pay per sale is only based on actual sales that you generate for the merchant. Some merchants will pay a flat fee (for example $50 per sale) or they may pay a percentage of the sale (for example 3% of total sales). In many cases the flat rate for pay is more lucrative but if you are confident that you can generate more in sales then the percentage is the way to go. Some merchants will even provide links that will track your sales either way. You really need to crunch the numbers and see what works for your website.
Pay per click is different than the pay per sale and the pay per lead. Pay per click affiliates are often paid much less but generally all you are asked to do is to get people to click. The tracking identification then keeps track of how many clicks you have generated and you are paid based on results. If you are confident that you can get people to visit a particular site for whatever reason then this is a great option for your website.
For pay per click affiliate marketing we suggest the Pay Per Click List.
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Types of Affiliate Programs

Different types of affiliate programs pay affiliates for different things. We will discuss briefly the way that affiliates pay their affiliates and why they may choose this type of affiliate program. This will help you in your choice of affiliate program.

Pay Per Click – While this type of affiliate program may yield the lowest earnings it can be a great way to generate web traffic. Because of the low conversion rate (less than $.10 per click) you may want to think twice about this affiliate method unless you have an extremely high amount of web traffic. The pay is based on unique site visitors so if you have plenty of those this may be very lucrative for you.

Pay Per Lead – The best example of this type of affiliate program is what credit card companies do. They will have you place a banner ad or other type of advertising on your website. Whenever a site visitor clicks on one of those ads and fills out the information you will get paid. However, credit card companies and others have gotten wise and many will now only pay you if the lead generates into a sale (or in the case of credit card companies, the visitor must be approved for a credit card). The bottom line is that the affiliate program wants you to get people to sign up for some sort of service or to make a purchase.

Pay Per Sale – A great example of this is Amazon, the online mega store. They offer an affiliate program where you can place general links or links for certain products on your site or blog and then as customers click through and it generates sales, those sales are tracked and you make a percentage. There are other affiliate programs that if you generate a sale in say web hosting services or enrollment in a school you make a flat fee for each sale that you make. These programs can be a great way to make money online.