Tuesday, July 9, 2013
How To Create Residual Income
By Vincent Nelson
There are many business builders who would like to make multiple streams of income to help pay the bills during these intense financial times. 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 difficult. Below you'll find 2 actual real-world selling systems. Your job is to work out which of them will be more financially friendly in the longer term.
It takes one hundred clicks to make a sale. Each sale pays a hundred dollar one-time commission. There is a 5% refund rate. If you pay $0.80 per click, what amount of money will you earn per $100 investment?
In the first selling example it takes 100 clicks to get a sale. The check received when that sale is formed is $100. The ordinary refund rate for this product is 5%. If you pay eighty cents per click what's going to be the return on your initial $100 investment?
The answer for the first example is as follows: it costs you $80 bucks to get one sale. So that implies you made $20 dollars but you have to take off 5% for the kickbacks, leaving you with $19 net profit. 19% is a good ROI. In the second example you may still receive $19 in commissions for that initial sale, but you also receive $40 for those four monthly sales. So if you add the $19 to the $40 then you have $59 which translates to a 59% investment return a much more desirable outcome!
A Little Passive Income Can Help a Lot
Pay close attention to any expert affiliate's selling model and you may quickly discover that the one time they'll offer an one-up product (it pays only once for initial sale) is if they can somehow leverage that sale. For instance, they may supply a free report or special insider review 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 owner of that list.
Or there could be an UPSELL opportunity later which has the potential to earn another commission. But what you will notice more often is they concentrate on promoting products or services that not only pay a one time commission but also pay a significant monthly passive commission. To explain, if the affiliate promotion product doesn't have a continuity programme behind it - most super affiliates will never touch it. It is thedifference between time and money.
The Secret to Wealth is Various Streams of Passive Income
The Nile is the world's longest river. The only real way you can appreciate the dimensions of the Nile is by seeing it from space. It is grand. What you do not see when you look down from your satellite is that the Nile River is what it is because it's fed by thousands of little tributaries. of them. This large river only exists due to all the tiny tributaries and streams that flow into it.
Taking your internet marketing income to a higher level is typically a matter of creating 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 kick back and watch the magic occur. When you have residual income coming in - you never start the month at zero!Consider that!
No more wondering how much your income will be and whether you'll be in a position to pay the bills. Your passive income will soon build up to be adequate to cover the bills before you even start on any other business ventures.
It takes one hundred clicks to make a sale. Each sale pays a hundred dollar one-time commission. There is a 5% refund rate. If you pay $0.80 per click, what amount of money will you earn per $100 investment?
In the first selling example it takes 100 clicks to get a sale. The check received when that sale is formed is $100. The ordinary refund rate for this product is 5%. If you pay eighty cents per click what's going to be the return on your initial $100 investment?
The answer for the first example is as follows: it costs you $80 bucks to get one sale. So that implies you made $20 dollars but you have to take off 5% for the kickbacks, leaving you with $19 net profit. 19% is a good ROI. In the second example you may still receive $19 in commissions for that initial sale, but you also receive $40 for those four monthly sales. So if you add the $19 to the $40 then you have $59 which translates to a 59% investment return a much more desirable outcome!
A Little Passive Income Can Help a Lot
Pay close attention to any expert affiliate's selling model and you may quickly discover that the one time they'll offer an one-up product (it pays only once for initial sale) is if they can somehow leverage that sale. For instance, they may supply a free report or special insider review 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 owner of that list.
Or there could be an UPSELL opportunity later which has the potential to earn another commission. But what you will notice more often is they concentrate on promoting products or services that not only pay a one time commission but also pay a significant monthly passive commission. To explain, if the affiliate promotion product doesn't have a continuity programme behind it - most super affiliates will never touch it. It is thedifference between time and money.
The Secret to Wealth is Various Streams of Passive Income
The Nile is the world's longest river. The only real way you can appreciate the dimensions of the Nile is by seeing it from space. It is grand. What you do not see when you look down from your satellite is that the Nile River is what it is because it's fed by thousands of little tributaries. of them. This large river only exists due to all the tiny tributaries and streams that flow into it.
Taking your internet marketing income to a higher level is typically a matter of creating 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 kick back and watch the magic occur. When you have residual income coming in - you never start the month at zero!Consider that!
No more wondering how much your income will be and whether you'll be in a position to pay the bills. Your passive income will soon build up to be adequate to cover the bills before you even start on any other business ventures.
About the Author:
Generating a variety of online passive income streams can end your worries. Find out the best way to grow your river at the Network Marketing Business Tips blog.
Posted by AppleFanatic at 2:06 AM
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