Are you one of the folks that need to make some residual income to ease financial pressures that you may be under due to this recession, and perhaps in the process you want to accrue some real wealth? Here's a fast 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 lucrative?
In one selling eventuality it takes 100 clicks to make a sale. The commission received, once that sale is created, is $100. The ordinary refund rate for the item is five percent. If you pay eighty cents per click what will be the return on your 1st $100 investment (did we mention there had been mathematics involved?).
In the second promoting scenario it in a similar way takes one hundred clicks to make a sale. Each sale offers $100 commission but also gives a once a month residual commission of $10. As shown, there is a 5% refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
Okay, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five percent refund rate so 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 galvanizing because of that four months worth of residual income. You would still get the $19 ROI on your 1st $100 investment, but here you make that extra $40 a 59% ROI.
Residual Income That Small Additional Goes a Great Distance
You can always tell an excellent affiliate's promoting model the only time they are going to offer something similar to in the 1st example above, they will find a way to leverage that sale. Most of them will be offering a free report, a bonus, or a type of review simply as a strategy of getting your opt in information. They give price for worth and this is where the leverage comes in. A targeted opt-in list might be worth up to 5 bucks a month to the list owner. The key is to offer an upsell later on which of course gives the chance to earn another commission.
The heavy hitters in the affiliate marketing business trump that than that, they concentrate on promoting their products which at first provide an one-time commission but go on to offer an upsell to something that provides a monthly residual income, for example a membership site. So the key to the best affiliate marketing opportunities isn't about the original 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% return on investment.
The Secret to Prosperity 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 obviously. Yes, it is that large. What you don't see from outer space is all of the thousands of small streams and rivers that run in to the Nile and there are thousands of them. All that water in those thousands of small streams is what converges to make the Nile so large.
Look at your affiliate promotion efforts in the same way, by making multiple streams of income ; you are creating a river of wealth. You must start by promoting numerous different products that have got the benefit of creating re-occurring streams of income. Stick to those and nothing else. Eventually you will be able to sit back and enjoy that brook of income. Imagine beginning 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 money to meet the bills it will already be there in your account - is the final word in monetary security.
In one selling eventuality it takes 100 clicks to make a sale. The commission received, once that sale is created, is $100. The ordinary refund rate for the item is five percent. If you pay eighty cents per click what will be the return on your 1st $100 investment (did we mention there had been mathematics involved?).
In the second promoting scenario it in a similar way takes one hundred clicks to make a sale. Each sale offers $100 commission but also gives a once a month residual commission of $10. As shown, there is a 5% refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click exactly as in the 1st example, how much will you make now for your $100 investment?
Okay, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five percent refund rate so 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 galvanizing because of that four months worth of residual income. You would still get the $19 ROI on your 1st $100 investment, but here you make that extra $40 a 59% ROI.
Residual Income That Small Additional Goes a Great Distance
You can always tell an excellent affiliate's promoting model the only time they are going to offer something similar to in the 1st example above, they will find a way to leverage that sale. Most of them will be offering a free report, a bonus, or a type of review simply as a strategy of getting your opt in information. They give price for worth and this is where the leverage comes in. A targeted opt-in list might be worth up to 5 bucks a month to the list owner. The key is to offer an upsell later on which of course gives the chance to earn another commission.
The heavy hitters in the affiliate marketing business trump that than that, they concentrate on promoting their products which at first provide an one-time commission but go on to offer an upsell to something that provides a monthly residual income, for example a membership site. So the key to the best affiliate marketing opportunities isn't about the original 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% return on investment.
The Secret to Prosperity 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 obviously. Yes, it is that large. What you don't see from outer space is all of the thousands of small streams and rivers that run in to the Nile and there are thousands of them. All that water in those thousands of small streams is what converges to make the Nile so large.
Look at your affiliate promotion efforts in the same way, by making multiple streams of income ; you are creating a river of wealth. You must start by promoting numerous different products that have got the benefit of creating re-occurring streams of income. Stick to those and nothing else. Eventually you will be able to sit back and enjoy that brook of income. Imagine beginning 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 money to meet the bills it will already be there in your account - is the final word in monetary security.
About the Author:
Discover a system designed to enhance your ability to earn income from residual income streams. Take advantage of a team willing to help you succeed faster.
No comments:
Post a Comment