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How To Generate Passive Online Income

By Author: Annemarie Barela
Total Articles: 2

Are you one of the many people that would like to form multiple streams of income to help pay the bills during these stressful financial times? Take this quick affiliate marketing test we're going to warn you, it contains some maths. Let's see how you do, it isn't difficult. Below follow two exact real-life promoting methods. Your job is to figure out which one will be more lucrative in the long term.

In one marketing eventuality it takes 100 clicks to make a sale. The commission received once that sale is created is $100. The ordinary refund rate for this product is 5%. If you pay 80 cents per click what will be the return on your initial $100 investment (did we mention there was maths involved?).

In the second scenario it takes the same - 100 clicks to make a sale. That sale also pays a $100 commission, but there is the extra bonus of an extra $10 a month commission for four months. There is also a repayment rate of 5%, and you will get paid that additional $10 four times. Again, if you pay $.80 per click what will your return on a $100 investment be?

O.K, in the 1st example it would cost $80 to make one sale. So you would make $20 minus the five pc refund rate thus ending up with an ROI of $19. That is not a bad 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 4 months worth of residual income. You'd still get the $19 ROI on your initial $100 investment, but here you make that additional $40 a 59% investment return.

Residual Income That Small Extra Goes a Ways

You can always tell an excellent affiliate's marketing model the single time they will offer something similar to in the first example above, they're going to find a way to leverage that sale. Most of them will be offering a free report, a bonus, or some kind of review simply as a way of getting your opt in information they give value for value and that's where the leverage comes in.

A targeted opt in list might be worth up to five dollars a month to the list owner. The secret is to provide an upsell later on which of course gives the opportunity to earn another commission.

The heavy hitters in the affiliate internet marketing business go one better than that, they target promoting their products which initially supply an one-time commission but go on to offer an upsell to something that offers a monthly residual income, such as a membership site.

So that the key to the best affiliate marketing opportunities isn't about the first commission, it's about what follows later . Can you blame them? In the above example, it's the difference between 19% and 59% investment return.

The Secret to Prosperity is Multiple Streams of Residual Income

The longest river in the world is the Nile. The only possible way you can appreciate the dimensions of the Nile is by seeing it from outer space. It is awe-inspiring. What you don't see when you look down from your starship is that the Nile is what it is because it's fed by thousands of tiny tributaries. Thousands of them. This huge River only exists because of all of the tiny tributaries and streams that run into it.

Taking your affiliate marketing income to a higher level is often a matter of making your own RIVER of income by making multiple, miniscule streams of income.

Start promoting products and services that pay a once per month residual income. And only those products. And then simply sit back and watch the sorcery happen.

Because when you have residual income coming in - you never start the month at zero! Think about that.

You will never start the month from scratch having to figure out what you've got to do in order to make cash to meet the bills it will already be there in your account - is the ultimate in monetary security. Then make sure you use wath I teach in my cost-free online advertising training when you are actually severe about creating passive income online. It will absolutely assist you get even more out of your efforts in less time.Residual Income streams

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