Residual income, or lifetime commission, affiliate programs.A residual income affiliate program is one that pays ongoing commissions to you, on a single referred customer, based on that customer's ongoing purchases. For life. That means that instead of a one-time only commission, you'll earn commissions on every product re-order, every monthly subscription fee, and even on purchases of unrelated products by the customer! Going back to the Lemonade Stand business... let's see how lifetime commissions worked for you and Annie. Annie's Lemonade Stand Goes Lifetime.Annie was one smart cookie. She realized that after an initial spike in Timmy's lemonade sales when you first started recommending his product, his business slowed down significantly.She figured that since Timmy was only paying you a commission on a customers FIRST visit, and not on their subsequent visits... and you had already spoken to everyone you could think of on your street... you weren't really recommending Timmy's Lemonade anymore.
So Annie decided that her Lemonade stand affiliate program would, (drum roll), provide LIFETIME commissions!!! Annie tells you this during recess on a humid Tuesday afternoon. "Think about it", she says. "You bring me customers once, and I pay you commissions EVERY TIME they come back." "Every time?", you say? "Every time.", she says. After sampling Annie's lemonade, and agreeing that is is as good, or better, than Timmy's, you decide to go for the lifetime commissions! So, during the entire week you tell everyone you meet in the hallways about Annie's lemonade stand. give them a cookie so Annie will know that they came from you. You even tell the kids you had sent to Timmy's during the prior weekend, that Annie's lemonade is your favorite in all the neighborhood. On Saturday, You wait with bated breath. Indeed, most of your pals go to Annie's. A few still go to Timmy's. Over the next few weeks, you take to wearing a yellow shirt that says: "Ask me about Annie's Awesome Lemonade!" Now, even kids you don't know are asking you about it. And you're sending more people Annie's way.
Incredibly, each Monday Annie gives you a commission not only for the brand new customers you gave her (2 cents each), but she also gives you a commission on all of your return customers (1 cent each)! Annie Adds More Products:You realize though, that people may not want regular lemonade EVERY weekend. They may want something different. And so, you ask Annie if she can add a few new flavors. (And, of course, still give you lifetime or residual commissions on those existing customers).Annie, being a visionary business woman, agrees. You both agree that she should add Strawberry Lemonade, Iced Tea Lemonade, and frozen lemonade sticks to her product offering. NICE! During that week at school, your pals are already planning what flavor they'll sample. And Annie stays true to her word - you get residual commissions on all your referrals - even the ones that you sent her way before she had a broader product line. You and Annie are making lots of kids happy, and making lots of money to boot. With residual income / lifetime commissions, you no longer have to keep finding NEW customers for Annie, if you don't want to. The income keeps rolling in on your existing customers. Sweeeet.
Timmy is pretty sore about this. He's watched the rise of Annie's Lemonade stand, and the fall of his. So after consulting with his Uncle, who's a seasoned marketer, he pulls out the big guns. That's when Timmy tells you about his 2-tier affiliate program.
Earning commissions from sub-affiliates - 2-tier programs Back to Affiliate Marketing Page.
Affiliate Masters Course eBook - Free PDF
Back to Rat Race Escape Artists Home Page
|
