THE REWARDS OF AFFILIATE REFERRALS
Direct Referrals
Aside from the profit potential of affiliate marketing from your own efforts,
you can also earn money from "direct referrals". When you introduce a
new affiliate to the program, they become your direct referral, or
sub-affiliate.
Affiliate programs will pay you a commission for every direct referral you
make. This is sometimes called a "residual" to distinguish it from the
commissions paid in relationship to product or service.
While direct referrals are the most common type of residuals you can earn,
you can find some affiliate programs that will pay you a residual on different
levels, also called "tiers".
There are affiliate programs that have an unlimited number of tiers. These
are Multi-Level programs. Tiers are just like steps, in a 2 tier program; your
referral link is tier one, the visitor who clicks the link they find on your
website and becomes an affiliate of the company is your direct referral or
sub-affiliate. When they place their referral link on their own website, their
referral link becomes tier two. The commission for each sub-affiliate usually is
not as generous as for your own direct sales.
In a 3 tier program, the same process is extended; you are paid a commission
or residual when your direct referral’s link is clicked on their website and
as a result another person becomes an affiliate of the company.
You now in a position to earn commissions three different ways:
- by referring visitors to the company website that results in a preferred
action
- through a referred visitor who becomes an affiliate of the company
- through payment of a certain percentage from the first referral, a smaller
percentage from the second referral and on through the number of tiers in
the program for each sub-affiliate
Depending on the number of tiers in an affiliate program, and the promotional
efforts of your self and your sub-affiliates, residuals can add between 5-10% to
your overall commissions.
You can create your own websites that can systematically generate income for
you day or night, even while you sleep.
You can link your web sites to the Online Merchants you represent, and earn
commissions from the visitor traffic you "Drive" to them.
Freedom to Express Yourself
Take an interest or hobby and let it produce income for you. Operate your
business at the time and place that suits you best. Organize your activities
according to the system that works for you. Use your time in the way that
satisfies you.
Affordable Operating Expenses
Even the most modest brick and mortar enterprise can cost thousands of
dollars to start and operate. Having an e-commerce website on the Internet has
reduced these costs, but what you save in money, you can pay in complexity and
time.
In contrast, launching an affiliate marketing website can be as easy as
choosing a username for your account and having a ready-made site given to you
to market the affiliate program product or service.
On the other hand, you also have the freedom to design your own website from
yourself, with the assistance of a website creation software package, or by
enlisting the services of a professional website designer.
The start up costs for the options mentioned above range from $50 to $1,000
or more. It all depends on how many activities you want your visitors to have
access to on your site.
Peace of Mind
Is there anything as frustrating as depending on another person to perform a
task by a certain time and in a certain manner, only to discover that they did
neither?
In today’s marketplace, employers are experiencing this type of frustration
more frequently. Locating qualified employees has become a multi-million dollar
industry; there are employment recruiters and agencies for every profession, and
using these services can be quite expensive.
And that is just the beginning of the spending. Once you find a qualified
person, you must be able to afford their salary, along with the benefits that
they expect. Add to this, the amount of money that you have to spend in order to
comply with the laws and regulations that apply to employment issues where you
conduct business and the total amount can be staggering.
In the worst case scenario, Heaven help you, if things go very wrong and you
can no longer afford to continue to have employees. The realization of the
liability associated with being an employer or an employee is one of the
strongest motivations behind the decision to manage or operate an affiliate
marketing business.
Automated Management
Behind that affiliate marketing referral link is the organization that is
producing the product, providing the service and performing all of the related
tasks that make it possible for you make money.
You are supplying the company with a very valuable commodity... Exposure. The
more people that are aware of their product or service, the more possibilities
of introducing the benefits of whatever they are selling, presenting an
opportunity to purchase it and increase the profits of the company.
There are thousands of products and service providers that operate affiliate
marketing programs, which can range from an individual who will pay a commission
on sales of their book to multi-national companies that have hundreds of
products to sell.
Unlimited Prospects
Everywhere that the Internet is accessible, a potential customer for the
affiliate program that you represent can be found.
The more highly concentrated the number of potential customers is in a
certain area, the more opportunities you have to increase your profits. Within
this statement lies another key to affiliate marketing success:
You have to know the BENEFITS of the product or service that your
affiliate program provides, and:
You have to know WHO is looking for these benefits
While it might be POSSIBLE to sell a person living in Antarctica ice, is it
PROBABLE? You know the answer. You have to know the facts about your market;
knowing who they are and where they are, will make your job of promoting a lot
easier to manage. This is the rule of thumb to keep in mind when you begin
selecting affiliate programs for your business.
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