Brown Book Loft Blog

Are you one of the people that need to make some residual income to assist in easing monetary pressures that you could be under due to this recession, and perhaps in the procedure you want to accumulate some real wealth? Here is a quick test on affiliate marketing. Let’s see how you do. Here are 2 affiliate marketing methods, you choose which one is better. Let’s see if you can choose which one will be more lucrative?

In one marketing eventuality it takes a hundred clicks to make a sale. The commission received once that sale is created is $100. The standard refund rate for the item is five pc. If you pay 80 cents per click what’s going to be the return on your 1st $100 investment (did we mention there was math involved?).

In the second promoting scenario it likewise takes a hundred clicks to make a sale. Each sale offers $100 commission but also gives a monthly residual commission of $10. As above, there’s a five percent 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?

OK, in the first example it might cost $80 to make one sale. So you would make $20 minus the 5% refund rate thus ending up with an ROI of $19. That is not such a terrible investment. Now, in the second example you get the same result for the sale — $80, but your net profit is far more impressive due to that four months worth of residual income. You would 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 Additional Goes a Long Way

You can always tell an excellent affiliate’s marketing model the only time they are going to offer something like in the 1st example above, they’re going to find a way to leverage that sale. A lot of them will be offering a free report, a bonus, or a kind of review simply as a way of getting your opt in information they give value for price and that’s where the leverage comes in. A concentrated opt-in list might be worth up to five dollars a month to the list owner. The key’s to offer an upsell later , which naturally gives the opportunity to earn another commission.

The heavy hitters in the affiliate marketing business play a trump than that, they concentrate on promoting their products which initially supply an one-time commission but go on to supply an upsell to something that offers a monthly residual income,eg a membership site. So that the key to the best affiliate marketing opportunities is not about the original commission, it’s about what follows later on. Can you blame them? In the example, it’s the difference between 19% and 59% ROI.

The Secret to Prosperity is Multiple Streams of Residual Income

The famous Brook Nile is the longest stream on this planet. If you look down from space you can see it and its two main tributaries quite clearly. Yes, it is that big. What you do not see from outer space is all of the thousands of little streams and brooks that run in to the Nile and there are many thousands of them. All that water in those thousands of little streams is what converges to make the Nile so gigantic.

Look at your affiliate marketing efforts in the same way, by making multiple streams of income ; you are creating a river of wealth. You need to start by promoting a number of different products that have got the advantage of making recurring streams of income. Stick to those and nothing else. Finally you’ll be able to sit back and like that brook of income. Imagine starting 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 in order to make money to meet the bills it will already be there in your account – is the final word in financial security.

Dani Johnson has made others millions – read the full Dani Johnson review here!