Friday, April 27, 2012
Are you one of the people that need to make some residual income to ease monetary strains that you could be under due to this recession, and perhaps in the act you want to accrue some real wealth? Here is a quick test on affiliate marketing. Let's see how you do. These are 2 affiliate marketing strategies, you choose which one is better. Let's see if you can pick which one will be more moneymaking?
In one promoting eventuality it takes 100 clicks to make a sale. The commission received once that sale is made is $100. The standard refund rate for the item is five pc. If you pay eighty cents per click what's going to be the return on your 1st $100 investment (did we mention there was maths involved?).
In the second marketing eventuality it in a similar way takes 100 clicks to make a sale. Each sale offers $100 commission but also gives a once a month residual commission of $10. As above, there is a five percent refund rate and the average length of the subscription is four months. Now, if you pay $.80 per click as in the 1st example, how much will you make now for your $100 investment?
OK, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five percent refund rate therefore ending up with an ROI of $19. That's not a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is a great deal more inspiring due to that four months worth of residual income. You'd still get the $19 ROI on your primary $100 investment, but here you make that extra $40 a 59% return on investment.
Residual Income That Tiny Extra Goes a Long Way
You can always tell an excellent affiliate's marketing model the single time they will offer something similar to in the 1st example above, they are going to find a method to leverage that sale. A lot of them will be offering a free report, a bonus, or a kind of review simply as a strategy of getting your opt in information they give price for price and that's where the leverage comes in. A concentrated opt in list may be worth up to 5 bucks a month to the list owner. The key is to supply an upsell later , which naturally gives the opportunity to earn another commission.
The heavy hitters in the affiliate internet marketing business play a trump than that, they target promoting their products which initially supply an one off commission but go on to offer an upsell to something that provides a monthly residual income,eg a membership site. So the key to the best affiliate marketing opportunities isn't about the first commission, it's about what follows later on. Are you able to blame them? In the example above, it's the most notable difference between 19% and 59% ROI.
The Secret to Wealth is Multiple Streams of Residual Income
The famous River Nile is the longest stream on this planet. If you look down from space you can see it and its 2 main tributaries quite obviously. Yes, it is that big. What you do not see from outer space is all the thousands of little streams and streams that run in to the Nile and there are countless thousands of them. All that water in those thousands of small 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 stream of wealth. You need to begin by promoting a bunch of different products that have the benefit of making recurring streams of income. Stick to those and nothing else. Eventually you will be able to kick back and like that river of income. Imagine starting every month off with a growing amount in the bank without doing a thing! Isn't the ideal eventuality?
You'll never start the month from nothing having to figure out what you have got to do to make cash to meet the bills it will already be there in your account - is the final word in economic security.
In one promoting eventuality it takes 100 clicks to make a sale. The commission received once that sale is made is $100. The standard refund rate for the item is five pc. If you pay eighty cents per click what's going to be the return on your 1st $100 investment (did we mention there was maths involved?).
In the second marketing eventuality it in a similar way takes 100 clicks to make a sale. Each sale offers $100 commission but also gives a once a month residual commission of $10. As above, there is a five percent refund rate and the average length of the subscription is four months. Now, if you pay $.80 per click as in the 1st example, how much will you make now for your $100 investment?
OK, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five percent refund rate therefore ending up with an ROI of $19. That's not a bad investment. Now, in the second example you get the same result for the sale -- $80, but your net profit is a great deal more inspiring due to that four months worth of residual income. You'd still get the $19 ROI on your primary $100 investment, but here you make that extra $40 a 59% return on investment.
Residual Income That Tiny Extra Goes a Long Way
You can always tell an excellent affiliate's marketing model the single time they will offer something similar to in the 1st example above, they are going to find a method to leverage that sale. A lot of them will be offering a free report, a bonus, or a kind of review simply as a strategy of getting your opt in information they give price for price and that's where the leverage comes in. A concentrated opt in list may be worth up to 5 bucks a month to the list owner. The key is to supply an upsell later , which naturally gives the opportunity to earn another commission.
The heavy hitters in the affiliate internet marketing business play a trump than that, they target promoting their products which initially supply an one off commission but go on to offer an upsell to something that provides a monthly residual income,eg a membership site. So the key to the best affiliate marketing opportunities isn't about the first commission, it's about what follows later on. Are you able to blame them? In the example above, it's the most notable difference between 19% and 59% ROI.
The Secret to Wealth is Multiple Streams of Residual Income
The famous River Nile is the longest stream on this planet. If you look down from space you can see it and its 2 main tributaries quite obviously. Yes, it is that big. What you do not see from outer space is all the thousands of little streams and streams that run in to the Nile and there are countless thousands of them. All that water in those thousands of small 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 stream of wealth. You need to begin by promoting a bunch of different products that have the benefit of making recurring streams of income. Stick to those and nothing else. Eventually you will be able to kick back and like that river of income. Imagine starting every month off with a growing amount in the bank without doing a thing! Isn't the ideal eventuality?
You'll never start the month from nothing having to figure out what you have got to do to make cash to meet the bills it will already be there in your account - is the final word in economic security.
About the Author:
Who else wants to discover how to produce endless leads, earned thousands in commission and get paid out even when we sleep? Online MLM Business. Plus, you will get vital access to a residual income opportunities article.