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Do You Like Affiliate Residual Income or Regular Commissions?

By: Bob Sherman

Read More About Affiliate Programs

Lots of people who want to earn money in their own home based business are puzzled by the different types of income plans offered by various business opportunities. So, let's examine the most common forms of income you can receive.

Plain commission income is compensation for performing a task. This task may require attracting a prospect to a sales website and then selling a product or service. Or it may involve getting someone to take a specific action like downloading some free software. For successfully completing this effort you realize a payment of a particular amount. This is frequently termed a commission.

Affiliate residual income is money you receive even when you are not actively working for it. There are two principal ways you can earn affiliate residual income.

First, residual income originates from the monthly payments a subscriber pays for products or services. These monthly payments may consist of payments for monthly shipments of health food products, long distance phone charges, web hosting, membership site charges, or ongoing services such as training. Once you get a prospect to sign up for these products or services you can continue to receive an ongoing commission as long as the customer continues buying the products or service.

You can also receive residual income because of the activities of your downline, or people you have brought into the marketing organization. Your downline members promote products or services, just like you do. You may be given payments based on the sales activities of several downline levels. Viewed from a different angle, there is a sharing of the commission for sales you make through numerous levels above you. Individuals several levels up in your upline will be paid as a result of your sales activities. This is what characterizes multi-level marketing or network marketing.

So, now that we recognize the basic options, which type of income would be best for you?

If you are looking for immediate cash, you'll probably want to start out with an affiliate program that offers regular commissions for your personal sales. Vendors using Clickbank, for example, pay up to a 75% commission for your sales.

You may also locate some affiliate programs that provide an initial product and them try to upsell the purchaser to include ongoing training or access to a membership site. With such a promotion you get the best of both worlds: a good simple commission for a sale and the likelihood of further residual income.

Once you have a steady flow of money, you might want to start investigating pure residual income opportunities.

You'll find a number of such opportunities that provide training, telecom services, website hosting, and numerous other services. These are sometimes complementary services you can offer people who purchased products that provided you with an immediate simple commission.

Lots of people gravitate, however, toward multi-level programs. If you choose a multi-level opportunity you ought to realize that a new skill set will become important for your success. Instead of simply selling a product or service, you now have to sell an opportunity. Since your commissions are shared by your upline, you'll have to build your own downline in order to earn good money.

No matter what type of income you select, there are companies that provide opportunities for you to make as much money as you are able. You simply have to put forth consistent, persistent effort and do the right tasks. But, that is another story.

Article Source: http://depositarticles.com/

Learn more about ways to make an affiliate residual income on the author's website at Residual Income Opportunities.

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