Tuesday, July 23, 2013

How To Generate Residual Income

By Reed Berkman


Are you one of the many business builders that would like to create multiple streams of income to help pay the bills during these intense economic times? Good, you're in the right place Take this fast affiliate marketing test. We're going to warn you, it does contain some math. Let's see how you do, it isn't tricky. Below are a couple of actual real-world marketing systems. Your task is to figure out which will be more financially friendly in the longer term.

It takes 100 clicks to get a sale. Each sale pays a $100 one-time commission. There's a 5% refund rate. If you pay $0.80 per click, what amount of money will you earn per $100 investment?

You need a hundred clicks to get a sale. Each sale pays a $100 plus a monthly commission of $10 bucks. There is a five percent refund rate and the average monthly subscription lasts 4 months. Assuming you pay $0.80 per click, what quantity of money will you make per $100 investment?

OK, in the 1st example it might cost $80 to make one sale. So you would get $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 make the same result for the sale -- $80, but your profit is very much more galvanizing due to that 4 months worth of recurring income. You'd still get the $19 ROI on your primary $100 investment, but here you get that extra $40 a 59% return on investment.

Passive Income Makes All the Difference in the World

Give attention to any super affiliate's promoting model and you will quickly discover the only time they are going to generally offer an one-up product (it pays only once for primary sale) is if they can somehow leverage it for later. As an example, they may provide a free report if you make the purchase through their affiliate link... Where the leverage is in collecting the opt-in info. A concentrated opt-in list is often worth $0.25 to $5.00 PER MONTH or even more to the list owner.

Smart affiliates will often focus on promoting products which will appear to only pay an one off commission, but in reality turn out to pay a big amount in monthly residual income. What you can learn from this is that if an affiliate marketing product does have a continuing chance to earn extra income, you need to go for it. It's the biggest difference between an awesome 59% ROI or a far less electrifying 19%.

Worry-Free Wealth Comes from Multiple Residual Income Streams

The Nile is the longest flowing body on Earth. You can see it and it's main tributaries from outer space. It is that giant. What you cannot see is the Nile is actually fed by thousands of small individual streams and tributaries. Thousands. Lots of tiny streams merging to make one big, world-record breaking stream.

Look at your affiliate marketing efforts in the same way, by making multiple streams of recurring income; you are making a flow of recurring wealth. You need to start by promoting a number of different products that have the advantage of making re-occurring streams of income. Focus on those and nothing else. Eventually you will be able to sit back and like that brook of income. Imagine starting each month off with a growing amount in the bank without doing a thing! Isn't that the good life?

No more wondering how much your income will be and whether you'll be ready to pay the bills. That residual income will soon build up to be enough to cover your bills and improve your life!




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