Is A Residual Affiliate Program Really Worth The Wait?

When joining affiliate programs people often overlook the long term benefits and choose to ignore residual affiliate programs. The main reason for this is the cost benefits you receive from joining a one-time commission affiliate program.

There are a number of reasons why people should at least consider looking into a residual program. When joining a one-time commission affiliate program you will find that the company pays between 20-70% commissions on sales.

You ask why anyone would even consider joining a residual program, where the payout consists of between 10-25% commissions on sales. Obviously when you think of business you look at the higher number and assume that it's the better deal. However, in the long run it is much more beneficial to take the lower commission rate.

The reason being is that with a one-time commission affiliate program you are only making the 20-70% of the sell at the time of purchase. This means if the customer purchases a product that has a monthly fee, you make nothing off of it after the initial purchase. As they purchase a web hosting account, for example, the initial $100 start up fee is great for you. Every time the customer pays $15 a month after that, you make nothing.

Now, with a residual affiliate program you are going to make a measly $15 at the time of purchase. However, if the customer keeps the web hosting for one year you've racked up $180. What this means is in the long run you are going to make more money than you would with the one-time commission offer, but you have to be patient.

Promoting a residual program allows you to receive an affiliate check monthly. The $15 for one customer doesn't sound like a lot, but if you can get five or ten customers paying the same thing you are up to $75-$150 a month.

Residual affiliate programs are certainly not for everyone, but they do deserve a look at least. The only risk with a residual plan is the chance that the customer may back out before you equal what the one-time commission affiliate program would have paid. Apart from that, it is apparent that in the long run you can build up more money and receive payments on a monthly basis from a residual affiliate program. You are the one that needs to make the choice that is going to work better for you. Working hard for a one time commission or to getting paid over and over from your effort.

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Joel Stenberg is the editor of the "Affiliate Secret" Newsletter and author of "Viral Affiliate Marketing". Pick up your free copy of the viral affiliate marketing guide and discover how to rake in affiliate commissions.

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