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The following article was published in our article directory on April 8, 2013.
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Setting Up Residual Income Streams online

Article Category: Advice

Author Name: Mark Pepper

Setting Up Residual Income Streams on The Web

Are you one of the folks that need to make some residual income to assist in easing monetary pressures that you may be under due to this recession, and maybe in the procedure you would like to accrue some real wealth? Here is a quick test on affiliate marketing. Let's see how you do. These are two affiliate marketing methods, you choose which one is better. Let's see if you can choose which one will be more lucrative?

In one promoting eventuality it takes one hundred clicks to make a sale. The commission received once that sale is made is $100. The normal refund rate for this product is 5%. If you pay eighty cents per click what will be the return on your first $100 investment (did we mention there had been mathematics involved?).

In the second marketing eventuality it likewise takes one hundred clicks to make a sale. Every sale offers $100 commission but also gives a once a month residual commission of $10. As above, there's a 5% refund rate and the average length of the subscription is 4 months. Now, if you pay $.80 per click just like in the first example, how much will you make now for your $100 investment?

O.K, in the first example it might 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's 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 inspiring due to that 4 months worth of residual income. You would still get the $19 ROI on your 1st $100 investment, but here you make that additional $40 a 59% investment return.

Residual Income That Small Additional Goes a Long Way

You can always tell a superb affiliate's promoting model the single time they will offer something similar to in the first example above, they are going to find a technique to leverage that sale. Most of them will offer a free report, a bonus, or a type of review simply as a way of getting your opt in info they give price for value and this is where the leverage comes in. A targeted opt-in list might be worth up to 5 dollars a month to the list owner. The secret is to offer an upsell later , which naturally gives the chance to earn another commission.

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

The Secret to Wealth 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 2 main tributaries quite obviously. Yes, it is that large. What you don't see from outer space is all of the thousands of tiny streams and streams that run in to the Nile and there are many thousands of them. All that water in those thousands of tiny streams is what converges to make the Nile so large.

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 begin by promoting a bunch of different products that have the advantage of creating recurring streams of income. Stick to those and nothing else. Finally you'll be able to kick back and like that stream of income. Imagine beginning each month off with a growing amount in the bank without doing a thing! Isn't the ideal scenario?

You may never start the month from scratch having to work out what you have got to do to make money to meet the bills it'll already be there in your account - is the final word in economic security.

Keywords: residual income,network marketing,passive income

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